Missed these tax breaks on your federal return? States may allow them

Personal Finance


Talk to your tax preparer or CPA about the itemized deductions that you might still be eligible for on your state return – and don’t forget to bring those receipts.

Here are a few breaks that are in play.

Unreimbursed employee expenses: The federal tax overhaul suspended unreimbursed employee expenses, which is part of a group of miscellaneous itemized deductions. In the past, you were able to claim these if they exceeded 2% of your adjusted gross income.

A handful of states still permit this break, including Arkansas, Pennsylvania and Minnesota, Rigney said.

Other taxes you’ve paid: The federal deduction for state and local taxes, including levies paid on income and property, are now capped at $10,000.

Check with your state to see if you can nab an itemized deduction for taxes you’ve paid. “Many states allow a deduction of real estate taxes paid on your state tax return,” said Rigney.

Some states also allow a deduction for federal income taxes paid.

Medical expenses: Qualified medical expenses must exceed 7.5% of your adjusted gross income in order to be deductible on your federal income tax return (10% for 2019).

The threshold might be lower on your state tax return, however. For example, those costs only have to exceed 2% of your income to be deductible in New Jersey.

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