Reply To: Itemize deductions – must I claim state taxes paid

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#7991
kaneohe
Participant

IRS cares that you take the correct “deduction” in a few instances esp. if you have self-employment income, your expenses for SE income are deducted from your gross SE income to determine your EITC. Some folks leave out some of those expenses so their SE income is higher and they get a larger EITC…….earned income tax credit. This is frowned upon. Similarly you can increase your future SS income by doing the same and this is also frowned upon.

However if you don’t deduct all your state income taxes, I’m not sure that IRS cares,since you are the only one being hurt.