Hawaii Federal Employee COLA
3/1/09 10:59 AM, Viewed by asker 3/30/09 4:50 PM
Total Views: 792
Where do I enter this COLA amount so it will do the proper calculations for the state tax deduction on the federal Sch A tax return?
Answer
Turbo asks for the information under the Deductions
and Credits, Ohter Tax Payments. But when I enter the
COLA$$$ the Federal Tax due increases and HI Refund
stays the same.
Answer
Notageek:
Enter it on Schedule A, Line 8... the calculation is kind of complicated and not well documented, in my experience.
Taximan:
It changes your federal, not state because you are entering it on your federal return (correctly).
It reduces the deduction you are taking from the state taxes you paid, because the part of your state taxes paid due to COLA are not eligible for the deduction... since they were not federally taxed.
Hope that makes sense.
