State tax info included 100K as state tax paid/withheld instead of 10K. However, SALT $10K cap resulted in no difference in fed tax due. Do I need to amend?

[halverbk]

State tax was transit tax from W-2 and not state income tax.

[DanielV01]

In this public forum we can't access your return or your TurboTax account.  In what box is the amount being reported, and what is your state?  Also, please keep in mind that the SALT cap includes state, local, property, and real estate taxes.

[Mike9241]

the issue you face is that $100K will show up on the schedule A reported to the IRS.  whether this will be a red flag is unknown.  the other issue is your state return. is $100K showing up as tax payments or only the correct amount? 

[halverbk]

The state is Oregon.  W-2 Box 14 had ORTWG listed which is the taxable income that the ORTTX (OR Statewide Transit Tax) is calculated from.  I listed both on the W-2 in TurboTax as OR Statewide Transit Tax when only the ORTTX should have been designated as such.  That flowed to Ln 17 of the State Tax Ded form where the $10K SALT cap took effect.  The $10K number flowed to Ln 5a of the 1040 Sched A.

[halverbk]

and the OR state return was not affected

[DanielV01 · Accepted solution]

Although you entered the information into the system incorrectly, it is quite possible that you don't really have to do anything, because the SALT limit has been applied.  SALT are your state income tax, local income tax (where applicable), personal property tax (vehicles, etc.), real estate taxes, and other special taxes levied by states or municipalities.  Whenever the total amount of these taxes are greater than $10,000, the amount you can deduct is $10,000.  So if you made a mistake that included $100,000 erroneously, the end result won't matter if you already were above the $10,000 SALT limit.  This explains why it had no effect on your Federal Return.

And, on your Oregon return these taxes probably never were deductible.  It wouldn't make very much sense to have a type of state tax to then be deductible on the state tax return.  So this is why your Oregon return is not being affected.

So if you have already filed and it's been accepted, don't worry about amending it, since there's probably no change in your tax refund/amount due.  But if you have not yet filed or the return is rejected, then yes go ahead and correct it.