MSP3
New Member

Deductions & credits

Wow, is that incredibly mislabeled!  My wife and I reversed engineered what was going on, and realised that it is the "state and local AND MORTGAGE INTEREST".  In otherwords, the sum of those two lines is maxed at $10k.

 

Example 1:

Charity $300

Mortgage Interest: $18,200

Realestate Taxes: $9,000

State and Local Taxes: $12,000

State & Local > $10k: -$11,000

Total: $28,500

 

In reality, what is going on is:

 

Example 2:

Charity $300

Mortgage Interest: $18,200

Realestate Taxes: $0

State and Local Taxes: $10,000

State & Local > $10k: -$0

Total: $28,500

 

Notice that in example 2, the sum of Realestate and State & Local is capped at $10,000.

 

The line labeled "State & Local > $10k" should say "The amount you would have been able to deduct if Trump hadn't changed the tax code."