jniven
New Member

Mississippi state itemized deductions for taxes paid

Schedule A itemized tax deductions are limited to $10,000 on federal but I have $14,214 state income taxes and ~$7,000 in real and personal property taxes too.  On my Mississippi return it is showing no itemized tax deduction because state income taxes are not deductible in Mississippi and the form shows only the maximum federal deduction.  The state itemized deductions should show the ~$7,000 of other taxes as deductible.  Since this is not showing up, it appears I'm paying $350 more in taxes to the state than I should be.

Cindy0H
New Member

State tax filing

It hardly seems fair but Mississippi puts a limit on this deduction. The limit is the same limit as the federal government which is $10,000.

State income taxes, or any other taxes allowed for federal purposes in lieu of state income tax, including taxes withheld on Mississippi gaming winnings, are not deductible on your itemized deductions schedule.

From the Missippi instructions:

State income taxes paid or any other taxes allowed in lieu of federal purposes including withholding taxes on Mississippi gaming winnings, are not deductible as an itemized deduction. 

Remember, based on Tax Cuts and Jobs Act, there is a $10,000 limitation on this deduction.


Full Mississippi instructions on page 15:

https://www.dor.ms.gov/Forms/80100188.pdf


State tax filing

Are we sure the TurboTax software is correct on this matter? Mississippi subscribes to the same limit of $10,000 as the federal limits, but I think that should be applied to line 3c (rather than line 3a) of MS Form 80-108, Part 1: Sch A. The $10,000 limit would be a limit on the total deduction taken on the MS form, not the amount pulled from Federal Form 1040, Schedule A. TurboTax seems to be pulling from line 7 of  Federal Form 1040, Schedule A rather than line 5d.

State tax filing

I am still unable to see any deductions for ms state... therefore suggesting I owe a penalty and. A lot of money Turbotax has issues! 

AmyC
Expert Alumni

State tax filing

You must fill in the itemized deductions in the federal portion of the program, regardless of whether you take federal standard or itemized.

 

MS form80-108 Line 3a is the total paid from federal Schedule A, line 5d and/or line 6. Line 3b subtracts out the amount paid in state income tax leaving 3c for the actual deduction. 

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State tax filing

I did that. The deductions are not transferring over. Techs were supposed to have that page added by Wed. Not there. :(