I have questions on Form 8960.  I have clients that have both state income taxes & inevestment expenses.  Is it true that if taxpayer does not itmenize that they would not get to subratct anything against their tax for either state income tax & investment expense on the Form 8960?  Also if you itemize, should you get at least some deduction for the state taxes paid? 

I could not find any direct information that said you could not deduct investment expenses that were subject to 2% on Sch A, the form instructions say " if properly deducted on your return when calculating your U S regular income tax."  It lists the same wording with both state income tax & investment expenses.   That was on page 12 of the 8960 instructions.  Similar words are on the 8960 worksheet on Proseries.