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Level 1
April 5, 2026
Question

TurboTax recommended I itemize my deductions, then added a $40,000 SALT deduction. I don't understand it or understand how I qualify. How do I know this is correct?

  • April 5, 2026
  • 1 reply
  • 33 views
I have no idea where this deduction was added or why. It makes my return quite nice, but I don't understand it

1 reply

VolvoGirl
Level 15
April 5, 2026

If you itemize deductions instead of taking the Standard Deduction you can deduct SALT - State and Local Tax up to 40,000.

 

Schedule A is any state payments you actually paid in 2025. So it could be....

A Jan 2025 payment for the 4th qtr 2024 tax return
A 2024 state extension payment made in 2025
A 2024 or prior state tax due paid in 2025 like for your 2024 tax return
Or a 2024 state refund you applied to 2025 counts as an estimated payment
Any 2025 estimates paid Jan 1 - Dec 31, 2025


But not a 4th qtr 2025 state estimated payment made in January 2026. That goes on next year's 2026 federal schedule A.