I moved back to California in 2010 after several years away, and I've forgotten or am mis-remembering some things.
Can I deduct the amount that I paid in state income tax in 2011 from my Federal income taxes? I am itemizing deductions because I have mortgage interest to deduct.
For example, if my paychecks had $10K taken out throughout 2011 for CA state income tax, can I deduct that $10K from Federal on my itemized deductions? For some reason, I don't remember doing this deduction from the last time I lived in CA back in 2007. I moved to Washington, where there is no state income tax, so this never came up.
The IRS website says "You can deduct state and local income taxes." I am using Taxactonline.com, and it also says that I can.