They say the power to tax is the power to destroy. But I say the power to tax is the power to entertain. Wildly. What else could explain this collection of strange state tax credits and deductions?
7. New Mexico. Are you 100 years old or older? You betcha you don't have to pay state income taxes. But WARNING: Not if you're living in your kid's in-law apartment (if you're lucky) or basement (if you're not). This credit only applies if you are 100+ and living on your own.
6. South Carolinans: Did you get married last year? Did you take your $25/50 tax credit for completing your pre-marriage counseling course?
5. Cans, cans, cans! Picking through other peoples trash for recyclables? Well, don't worry about California taxing you on all that sticky income from your awesome return empire — none of that income is taxable.
4. $150 tax credit in Georgia for completing an approved Driver's Ed course? Yes. Awesome.
3. Hawaii gives special treatment in the form of a $3,000 deduction to people who raise "exceptional trees" (seriously).
2. The State of New York is kind enough to allow you to deduct up to $10,000.00 for your medical expenses that you incur while donating a kidney. But here's the thing: Only once, buddy.
1. Back to California for Number One. This exclusion has to be the most bizarre. And here it is: If you receive payment from the Ottoman Turkish Empire because you were persecuted between the years of 1915 to 1923, well, you'll be happy to know that those payments are exempt from state income taxation.
UPDATE:
And one more just for fun:
State of Maine: The Super Research Tax Credit. Super!
If you need assistance understanding the best tax write offs for yourself, contact us. We can help with tax preparation, tax planning, and domestic and international resolution. Call 888-727-8796 or email info@irsmedic.com.
