For Itemized Deductions on Schedule A Line 5a State taxes, you can deduct any state tax actually paid in 2022 which includes……..
1. A 4th quarter 2021 State estimated payment paid in Jan 2022
2. State estimated payments for 2022 but not the 4th quarter if you paid it in Jan 2023.
3. A state tax due for 2021 or any prior year paid in 2022
4. All state withholding from your paychecks, retirement checks, unemployment checks, etc.
5. Any local taxes withheld on your checks like SDI in box 14 or 19 on your W2 - those will transfer automatically from your W2.
Then there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. And then all your itemized deductions have to be more than the standard deduction to get any benefit (so you would only be getting the benefit of the amount that puts you over the standard deduction). And since the Standard Deduction is increased more people will not need to Itemize.
Enter it under
Federal Taxes (or Personal for H&B)
Deductions and Credits
Then scroll way down to Estimates and Other Taxes Paid
Other Income Taxes - Click the Start or Update button
Next page scroll down to Other Income Taxes Paid in 2022
Balance due on your 2021 State taxes paid in 2022
or Payments for 2020 or a prior year state or local paid in 2022
