- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
It says I maxed out the federal $10,000 deduction for itemized state and local taxes, but I didn't enter that amount. Where does it come from?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
Your itemized deductions for state and local taxes include:
- Real Estate Taxes
- Personal Property Taxes (ex. car tax)
- State Income Taxes
Most likely, your state withholdings on your W-2(s) and real estate taxes from your 1098 mortgage statement maxed out the $10,000 limit.
Last year's tax reform introduced a new $10k limit on these deductions. In years 2017 and earlier, you were not capped.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
Hi,
I have a mortgage interest of 9141 and property ( real estate) taxes of $9664 ( school and to the county). With all other small items it totals $20,697.
I understand that my standard deduction of $27700 is the best for 2023.
why does the TurboTax software, say your standard deduction of $27700 is better compared to itemized $11000 something. Why is it not considering the total $20697 while calculating itemizing??? It’s not taking the mortgage interest into consideration???
am I missing something????
thank you
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
State and local taxes includes:
- State, local, and foreign income taxes or state and local general sales taxes in lieu of state and local income taxes
- State and local real estate taxes
- State and local personal property taxes
For more information check: Deductible taxes
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
You may report home mortgage interest, but it sounds like the software has chosen the Standard Deduction of $27,700 over the itemized deductions.
Home mortgage interest is reported on line 8 of Schedule A Form 1040.
State and local taxes are reported on line 5 of Schedule A Form 1040.
**Mark the post that answers your question by clicking on "Mark as Best Answer"