<title>Learn how Money handles state income tax</title>
<category fLocale="cdn">tax</category>
<klink type="cncpt">Tell me how Money handles state income tax</klink>
</index>
<content>
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<p>You can track your taxes using different tax <glossary tNum="286964">categories</glossary>, including state income tax. Money tracks state income tax payments in the Tax Line Manager so you can claim them as itemized deductions on your federal tax return. However, Money does not project your state income tax liability. You can use the planning features of a tax software product, such as TaxCut, to plan for and prepare your state income tax return.</p>