Welcome

I try to add tax blog articles weekly on tax topics that may be interesting to you. Please browse. If there is a topic you would like to see here or would like to more information on, please contact me.

Find Out More

My Tax Blog

July 10, 2019   |   0
Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

ledger sheet with multiple columns

The short answer is No. The numbers are different. Federal and most State tax returns subtract for fringe benefits (e. g. 401K), adjustments (e. g. student loan interest) and/or a standard deduction before calculating total taxable income also known as Adjusted Gross Income or AGI. However, Cities usually base their taxable income on the Box Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?