Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 4:54:57 PM

At what point does the software compute my SALT deduction?

0 4 3402
4 Replies
Alumni
Jun 4, 2019 4:54:58 PM

As you enter in any order:

  • State income tax
  • local income tax if any
  • local property tax, whether auto registration related (as allowed) or real estate property tax
  • or alternatively, if no income tax, then sales tax

the program keeps a running total and uses that until the maximum allowed of $10,000 for a married couple.

New Member
Jun 4, 2019 4:54:59 PM

Once I hit the $10K, TT will not allow entry into any SALT type tax field.  TT should accept ALL data and do the $10K cap calculations in a worksheet.  It also appears that TT will not accept input of estimated/quarterly taxes paid in 2018 after I hit the $10K limit on SALT?  This would be an error in the system.

Alumni
Jun 4, 2019 4:55:01 PM

@gordongrand  It seems you have misinterpreted what was on the screen? So instead of dinging the answer, read the further explanation

Alumni
Jun 5, 2019 11:39:54 PM

TurboTax does indeed operate to limit the legal maximum deductible to the Federal government imposed limit of $10,000.  You are indeed presented a screen that tells you this limit on deduction has occurred.  However, reading the rest of the screen tells considerably more, and it helps to read all and not just some of what is on the screen.

What is does not tell you is that it is preventing you from having recorded the excess, and to say so is a misreading of the screen.  In fact, for other purposes than the SALT limitation, those excess taxes paid are recorded and may be used in some other context.

READ the attachment and ALL of the Text in that first page!