Ask Me Help Desk - How to do State return?

I filed form 1040NR and itemized deductions only for State and local taxes on Schedule A.

How to file my State return?
Can I use standart deduction there or I must itemize also?
If I have to itemized,what actually to itemized as a deduction?
Because I need to exclude state and local taxes on my STATE RETURN which itemized on 1040NR... :(
Is this mean that I have only 1 personal exemption on MY STATE RETURN?
I thing that if my itemized deductions are smaller that Standart then I can take Standart deduction? Am I right?
Can someone explain me what to do?
As a non-resident can I still use POVERTY LEVEL CREDIT?
This is very confusing issue.. :eek:

Thanks to all of you...

Troj:

The first thing you need to do is identify which state you are filing for.

In virtually all cases, non-resident aliens file state income tax returns exactly like normal state residents.

If your state standard deduction is greater than your itemized deduction, then, in most states, you can claim the standard deduction. Some states, however, require you itemize on the state return if you itemize on your federal return.

Again, I cannot answer definitively until you identify which state is involved.

Quote:

Originally Posted by AtlantaTaxExpert

Troj:

The first thing you need to do is identify which state you are filing for.

In virtually all cases, non-resident aliens file state income tax returns exactly like normal state residents.

If your state standard deduction is greater than your itemized deduction, then, in most states, you can claim the standard deduction. Some states, however, require you itemize on the state return if you itemize on your federal return.

Again, I cannot answer definitively until you identify which state is involved.

\

Virginia and Maryland

Troj:

For Virginia, if you itemize on your federal return, you must itemize on your state return, even if the even if using the standard deduction would result in a greater tax benefit on your Virginia return. All federal itemized deductions apply except for state and local income taxes. Further, since you are a part-year resident, you can only claim those deductions you incurred while a resident of Virginia.

For Maryland, you can itemize on your Maryland tax return if you itemize on your federal return, but you do NOT have to itemize if the standard deduction gives you a greater tax benefit.

BTW, since you are filing two state returns, credits for taxes paid in the other state will probably apply. For this reason, it would probably be better if you have a tax professional prepare these returns to make sure that you do not pay taxes to both states on the same salary.

Quote:

Originally Posted by AtlantaTaxExpert

Troj:

For Virginia, if you itemize on your federal return, you must itemize on your state return, even if the even if using the standard deduction would result in a greater tax benefit on your Virginia return. All federal itemized deductions apply except for state and local income taxes. Further, since you are a part-year resident, you can only claim those deductions you incurred while a resident of Virginia.

For Maryland, you can itemize on your Maryland tax return if you itemize on your federal return, but you do NOT have to itemize if the standard deduction gives you a greater tax benefit.

BTW, since you are filing two state returns, credits for taxes paid in the other state will probably apply. For this reason, it would probably be better if you have a tax professional prepare these returns to make sure that you do not pay taxes to both states on the same salary.

Thanks.
But on VA return (Form 763) there is nothing to itemized because I have to exclude State and Local taxes.I only itemized state and local taxes.
Is this mean that I have to put 0 across the line of itemized deductions on my State return.(line 42 , Part 4)

Troj:

Unfortunately, yes, you must claim zero if taxes is all you claimed on your federal itemized Schedule A.