Schedule A tax that could have been deducted

Forum|Forum|3 years ago
January 22, 2023
7 replies
117 views

Hello, I am trying to determine how much state/local sales tax I could have deducted from my state/local income taxes in line 5a of Schedule A. How is that typically determined?

Not A Product Question

Best answer by VolvoGirl

Oh, did you get a 1099G for a state refund and need to know how much is taxable? It should be straight forward. What is it asking you for? How much was W2 state taxes and any state tax due you paid?

Is it asking you for the total of all your payments and withholding?

xmasbaby0

Level 15

The state and local tax you can deduct on schedule A is capped at $10K.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

VolvoGirl

Level 15

There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

State and local taxes paid are:

any state withholding from your paychecks, retirement checks, unemployment checks, etc.

a state tax due you paid last year

any state estimated tax payments you made

any local taxes withheld on your checks like SDI in box 14 or 19 on your W2 - those will transfer automatically from your W2.

sbpatel2009-gmaiAuthor

Level 2

Thanks for the rapid reply, Ms. VolvoGirl! I wanted to clarify that the question is how to determine "Total state and local general sales taxes you could have deducted on Schedule A, line 5a". For context, I already have Schedule A completed from 2021. Now, I'm trying to complete 1040 for 2022.

I think the response you provided was to determine "Total deduction for state and local taxes (2021 Schedule A, line 5e)"

VolvoGirl

Level 15

Oh, did you get a 1099G for a state refund and need to know how much is taxable? It should be straight forward. What is it asking you for? How much was W2 state taxes and any state tax due you paid?