I am retired but I work. State income taxes are deducted from my paycheck, but from my pension,I pay estimated tax, but turbo tax lists those as income! I'm confused.

[pbeck24]

I thought all state income taxes were deductible below 10,000.  Turbo tax is making me do the standard deduction but the deducted state taxes and estimated payments should let me itemize.

[CynthiaR · Accepted solution]

It sounds like the estimated state tax payments were put in the wrong category for TurboTax to categorize them as income.

You would go to the

1) Deductions and Credits tab

2)  Scroll down to Estimates and Other Taxes Paid

3) Click the "Estimate" tab

4) You will see "State Estimated Taxes" 

    a)  You would then put in the payments you made to the state

This should stop those payments from being classified as income and let you itemize.  Be aware there is a cap on property and state taxes for $10,000.

[pbeck24]

I did this but....now, when I look at my deductions, what is missing are the state and local taxes that I paid that were withheld from my paycheck.  The state and local taxes are listed on my W-2.  Help!