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Level 1
posted Dec 10, 2019 5:00:32 PM

Can I include State and Local Income Taxes paid in 2018 (but unclaimed on my previous tax return) in my SALT deduction for the 2019 tax year?

Hypothetical question. I am looking to see if I will have to delay purchases to increase my deductions next year, or if I should wait until January to make those purchases and deduct them from my 2020 tax year.

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1 Best answer
Level 15
Dec 10, 2019 5:06:07 PM

NO

you cannot do that.  You can only enter the state and local taxes for the tax year in which they were paid, and you are subject to the $10,000  SALT limit for all of your state, local, and sales taxes paid in that tax year.  If you exceeded the $10,000 limit for your 2018 tax return, that is just the way it worked under the new tax law.  You cannot save up the deduction and take it the following year.

2 Replies
Level 15
Dec 10, 2019 5:04:22 PM

You can only deduct them the year you actually paid them, no matter what year they are for.  So they would go on your 2018 return.

Level 15
Dec 10, 2019 5:06:07 PM

NO

you cannot do that.  You can only enter the state and local taxes for the tax year in which they were paid, and you are subject to the $10,000  SALT limit for all of your state, local, and sales taxes paid in that tax year.  If you exceeded the $10,000 limit for your 2018 tax return, that is just the way it worked under the new tax law.  You cannot save up the deduction and take it the following year.