Why did our state and local income taxes (Sch A, line 5) drop almost $2000 from 2016 to 2017? Our AGI actually went down almost $40,000.

[EdwardK · Accepted solution]

If your AGI decreased from 2016 to 2017 due to less wages and salaries, then your taxes withheld probably decreased as well. The amount on Schedule A, Line 5a is primarily comprised of the following:

• State and local income taxes withheld from your wages and salaries during 2017. Your Form(s) W-2 will show these amounts. Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld.
  
• State and local income taxes paid in 2017 for a prior year, such as taxes paid with your 2016 state or local income tax return.
• State and local estimated tax payments made during 2017, including any part of a prior year refund that you chose to have credited to your 2017 state or local income taxes.
• Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Benefit Fund, Rhode Island Temporary Disability Benefit Fund, or Washington State Supplemental Workmen's Compensation Fund.
• Mandatory contributions to the Alaska, California, New Jersey, or Pennsylvania state unemployment fund.
• Mandatory contributions to state family leave programs, such as the New Jersey Family Leave Insurance (FLI) program and the California Paid Family Leave program.