Part Year AL Resident Itemized Deductions - FICA Question

Forum|Forum|5 years ago
March 9, 2021
1 reply
18 views

I have a client who moved to AL from MD.

I have allocated their itemized deductions such as contributions, mortgage interest on new house, and real estate taxes on new house - that were paid while living in Alabama (this is per the form 40 instruction for a part year resident) to the Alabama return so that they are included as deductions on Schedule A.

My question is for their W2 that has two different state wage amounts. - Can the FICA taxes be prorated and be deducted as an itemized deduction on Schedule A of Form 40? I don't see why not but is this too aggressive? It would involve me calculating the amounts related to Alabama and Maryland and then hopefully the system would pull the Alabama portion of FICA to the Alabama Schedule A.

Maryland Itemized deductions are based on the Maryland Income factor and are prorated, so this does not apply to Maryland.

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qbteachmt

Level 15

FICA taxes are not tax deductible at all.

A self-employed person gets a reduced computation, because they are essentially acting as both employer and employee for purposes of FICA.

When have you deducted FICA as an itemized deduction for a 1040?

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E

EmsBTW2016Author

Level 4

Not the 1040.

I am referring to the Alabama Form 40 Schedule A line 6. See attached photo and look at line 6. I live in Alabama and we get this as part of our state itemized deductions.

qbteachmt

Level 15

Sorry, I read the "form 40" as "1040" in my initial scan.

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