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Federal adjusted gross income is reduced by either the allowable state standard deduction or the allowable itemized deduction amount, whichever is greater (special instructions must be followed by higher income taxpayers, as the deductions are phased out for state purposes similar to the federal phase-out).
For tax year 2004, if your federal adjusted gross income is greater than $142,700 ($71,350 if married filing separate), a worksheet must be completed. The state standard deductions are as follows: OnLine taxes will compute this worksheet for you if applicable.
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