Depending on how much of your itemized deductions include state and local taxes, this may not provide as big of a tax benefit on the state return. When you calculate your OK itemized deductions, don't forget you will need to add back the state and local tax deductions to your federal itemized deduction. Also, everything else, other than Medical and charitable deductions are capped at $17,000. So if you are making your calculations based on a $32,200 itemized deduction, your numbers may be different once adding back the state and local taxes and if you have mortgage interest over $17,000 reducing that to $17,000.
So for someone who had mortgage interest of $20,000 and state and local taxes of $12,200, their OK itemized deduction would only be $17,000, not $32,200.
Itemized Deductions
Federal itemized deductions must be adjusted by adding back state and local sales or income taxes to arrive at Oklahoma itemized deductions. Oklahoma itemized deductions will be capped at $17,000, excluding charitable contributions and medical expenses which are not subject to the $17,000 cap
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