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Nebraska state return why is more than $10,000 (line 8) of state income taxes used to reduce total federal itemized deductions (line 7)? $10,000 is state tax limit.
Nebraska return takes total itemized deductions used to get to taxable income and takes from that state income taxes reported. However, total state taxes allowed in federal itemized deductions is $10,000. For 2022 Nebraska turbo tax took total itemized deductions of about $30,000 on line 7 and subtracted state income taxes of about $14,000 on line 8 even though only $10,000 of state taxes was used to get to the $30,000 of federal itemized deductions. Shouldn't the state income taxes subtracted be limited to the total state taxes included within the total itemized deductions?
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March 1, 2024
4:36 PM