How is the state and local income taxes greater than $10,000 calculated?
I paid $17,201 in state and local taxes, I know there is a $10,000 cap, but the state and local taxes greater than $10,000 is showing a negative $12,872 on my return.
No need to respond to my last question I have researched the issue and have the answer. It is combining State and Local income taxes paid, Real Estate taxes paid and Personal taxes paid and deducting the $10,000 maximum deduction from that total resulting in the difference reducing my overall deductions.
Yes, you are correct. Beginning on your 2018 Tax Return, you can only deduct a maximum of $10,000 for the combination of State, Local, Property, and Sales Tax deduction.
