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New Member
posted Jan 31, 2021 3:08:06 PM

The amount of state and local income/sales taxes that appears on my deductions is not correct. How do I fix this?

The program claims I should take the standard deduction, which is clearly not true.

0 7 802
7 Replies
Level 15
Jan 31, 2021 3:12:13 PM

There is a limit on SALT.  There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  SALT is State And Local Tax.  Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

 

Can you see the Schedule A?  If it's giving you the Standard Deduction and  not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in  itemized deductions, choosing.  It should highlight that in the list, click on GO

 

Then Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

 

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-itemized-or-vice-versa/00/25831

New Member
Feb 3, 2021 1:22:48 PM

Your response did not address my question.  I asked how I could fix the error (of omission) that TurboTax made, not how I could see that it made that error.

 

I managed to solve my problem, but it wasn't easy.  And I am surprised that TurboTax did not read in my state income tax withheld as shown in my 1099;  it read in the Federal tax correctly from that form.

Level 15
Feb 3, 2021 1:25:33 PM

What was the problem?  It may help someone else.  Did you import the 1099R or enter it manually.  We may have to report a bug.  

New Member
Feb 3, 2021 1:38:01 PM

I imported the 1099R.  I had to enter the state tax withheld manually.

Level 15
Feb 3, 2021 1:42:09 PM

Yes, importing is not always 100% accurate.  You have to check it over close.  It is usually just as easy and as fast to manually enter forms.

Returning Member
Feb 12, 2021 8:04:20 AM

I experienced the same issue as you did.  Can you show me how to fix the incorrect state and local income taxes that appear on my deductions?

Thanks.

Returning Member
Feb 12, 2021 8:10:48 AM

I'm encountering the same issue as you did.  Can you show me how to fix it?  Thanks.