Yes, According to Treasury Regulation §1.164-3(j):
Payments made to charitable organizations that result in state or local tax credits should be treated as payments of state or local taxes on Schedule A, Line 5, rather than as charitable contributions
While TurboTax doesn't have a dedicated input field for state tax credit payments that qualify as SALT deductions under Treas. Reg. 1.164-3(j), you can still manually enter these payments in the "Other Income Taxes" section
To enter these payments as in Turbo Tax as state taxes paid, follow these steps:
- Open your TurboTax return
- Select Deductions & Credits
- Scroll to "Add" and search "Estimates and Other Taxes Paid."
- Click on "Income Taxes Paid."
- Go back to Deductions & Credits and
- Select "Income Taxes Paid," locate the line for "2023 state estimated taxes paid in 2024."
- Enter the amount of your payment that resulted in a state or local tax credit here
- Check Schedule A, Line 5 as part of your state and local taxes deduction to be sure it calculated
