You can enter the extra CA state withholdings on the rental sale under the section for estimated state tax payments.
If you do not have a specific date when these CA taxes were withheld, just choose the 4th quarter, CA from the dropdown menu and change the date to 12/31/2016 then enter the amount.
These estimated state tax payment amounts will flow through to your CA state income tax return.
Once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here), select "Take Me To My Return" and type "estimated tax payments" in the search bar then select "jump to estimated tax payments". This will take you to the Other Income Taxes section
Alternatively, to enter your state income taxes in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Deductions & Credits”
- Next click on "jump to full list" or “I’ll choose what I work on”
- Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
- Select "Other Income Taxes" and start (or update). (screenshot)
Under Other Income Taxes Paid in 2016 is
Withholding not already entered on a W-2 or 1099 <Start>
Enter the $$ withheld in the State box (round to nearest dollar - don't enter pennies) and select California from the dropdown
In TT/Calif there is an interview screen asking if you have withholding on Forms 592-B or 593. You will be shown an image of the form to input the data for electronic filing.
The state taxes you paid to CA might not affect your federal return.
State taxes are only deductible if you itemize, and the total deduction for taxes is limited to $10,000.
So if you already have $10,000 in taxes, you won't receive a tax benefit from the additional deduction.
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Robert, This has been very useful information. But when you indicate if you already have 10k in taxes you won't receive a federal tax benefit for the additional rental sale. I itemized and my line 40 on the original federal return exceeds 10k. So when amending my return per the instructions on this page, it does change my federal return for additional funds. I'm I missing something?
The 10,000 SALT limit started in 2018. For 2016 You can deduct all state taxes paid if you itemize deductions.
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.