Solved

state and local taxes greater than $10,000

Forum|Forum|3 years ago
March 11, 2023
2 replies
0 views

What does it mean in the summary of Deductions where the line states: State & Local Taxes Greater than 10,000 and the amount is a negative amount making the total deduction smaller?

My turbotax shows (-$247) -- what does this mean?

Best answer by KrisD15

Because of the SALT (State And Local Tax) limit, Taxpayers are only allowed to claim up to 10,000 of state tax they pay each year.

This includes Property Tax and State & Local Income tax.

It sounds like you paid 10,247 in 2022, and the program is alerting you that since only 10,000 is allowed, 247 will be subtracted from that amount and reported on Schedule A.

IRS TOPIC 503

KrisD15Answer

Because of the SALT (State And Local Tax) limit, Taxpayers are only allowed to claim up to 10,000 of state tax they pay each year.

This includes Property Tax and State & Local Income tax.

It sounds like you paid 10,247 in 2022, and the program is alerting you that since only 10,000 is allowed, 247 will be subtracted from that amount and reported on Schedule A.

IRS TOPIC 503

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

C

cpshankarAuthor

gotcha - thanks a bunch. I was scratching my bald head! I will recheck schedule A entries.

T

Taxee1

What does it mean in the summary of Deductions where the line states: State & Local Taxes Greater than 10,000 and the amount is a negative amount making the total deduction smaller?

My turbotax shows (-$9800) -- and I live in a state that does not have any state or local income taxes! Can someone help me interpret this and why it's removing so much from my deduction total? Kind of disconcerting - thanks for any help!

KrisD15

State and Local Income taxes include property tax and sales tax.

Look at your Schedule A with your tax return Form 1040.

Look at lines 5a-5e

(Note that you must select "Itemize Deductions" rather than taking the Standard Deduction to see Schedule A)

To switch back and forth, select "Done with Deductions & Credit" and the option will be shown

HERE is how to preview your 1040 and Schedule A

Desktop users switch to FORMS

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

T

Taxee1

Thank you @KrisD15 for the quick reply - so I am guessing because I itemized and had more than what was allowed (maybe it was 19800 in property taxes and sales taxes) they backed out that 9800 to get me back to the 10000 cap? That - while not intuitive - would make sense.