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Level 2
March 22, 2026
Question

State Tax Deductions: Why is it taking the lesser of the amounts when the Larger deduction is (Recommended)?

  • March 22, 2026
  • 1 reply
  • 38 views
Let's find your biggest deduction
You can deduct either state and local income taxes or the sales tax you paid during the year—but not both. We've compared them to see which one saves you more.
  • State and local income tax deduction: $3,541.00
  • Sales tax deduction: $1,178.00
Which deduction would you prefer?
   State and local income tax deduction
   Sales tax deduction
   The larger deduction (Recommended)

    1 reply

    AmyC
    Level 15
    March 23, 2026

    First instinct questions the SALT cap, itemized or standard deduction and your income. Let's look at these:

    • If you are taking standard deduction, the program is ignoring the state and local tax even though neither is being used.
    • If you are high income, your cap starts shrinking. This could reduce the state and local tax until the program decides it isn't the best choice.
    • Married filing separate is another layer of recalculating things inside the program.

    If you are filing itemized and these numbers are affecting your tax liability, you need to contact support so they can see your screen and determine what the issue is and how to help you move forward.

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    Level 2
    March 23, 2026

    Hi Amy C., I appreciate the response and insight.  I am taking the standard deduction per TT and I am not near being able to itemize.  I am confused because TT auto recommended the higher value and even when I select the higher value instead of the recommended choice, the lower value is transferred to the Deductions page.

    Level 15
    March 26, 2026

    "the lower value is transferred to the Deductions page." - by this, do you mean, Schedule A, or do you mean on the Deductions & Credits Summary screen in the interview?

     

    If the latter, just ignore it, because the value is ignored as Amy said for purposes of your tax return anyway.

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