- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
FICA tax, Social Security and Medicare payments are not "Income Tax". FICA payments are credited to your Social Security Account.
Those payments are not refundable, they are not included as a deduction, and they don't get applied to your tax liability.
No, these payments do not count as Federal Income Taxes withheld.
The 10,000 cap is on State and Local Tax.
Your deductible State Tax includes Property Tax PLUS either state income tax OR state sales tax.
You may deduct
State Income Tax and Property Tax and up to a limit of 10,000
or
State Sales Tax and Property Tax up to a limit of 10,000
Once the amount hits 10,000, entering more Property Taxes won't change the deduction and won't affect your return.
"The state and local tax (SALT) deduction permits taxpayers who itemize when filing federal taxes to deduct certain taxes paid to state and local governments. The Tax Cuts and Jobs Act (TCJA) capped it at $10,000 per year, consisting of property taxes plus state income or sales taxes, but not both."
**Mark the post that answers your question by clicking on "Mark as Best Answer"