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March 6, 2025
Question

If state and local income tax deduction is higher, why is it posting the estimated sales tax deduction which is lower?

  • March 6, 2025
  • 1 reply
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1 reply

March 11, 2025

It might be because there's a cap on the SALT deduction (state and local tax) which may limit the amount you can deduct. ‌You should still go back and review your entries to make sure that all of your information is entered correctly. ‌TurboTax will suggest what deduction is more advantageous for you. To go back to this section: 

 

  1. Open or continue your return.
  2. Navigate to the taxes paid section:
    • TurboTax Online/Mobile: Go to taxes paid.
    • TurboTax Desktop: Search for taxes paid and select the Jump to link.
  3. On the Estimates and Other Income Taxes Paid screen, select Start or Update next to the appropriate topic under the heading that applies to your situation:
     

Which deduction should I choose, state and local income tax or sales tax?

Can I deduct state or local income tax on my federal return?

Can I claim the sales tax deduction?