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marieyoung120
New Member

Why does TT allow only $3961 deduction for state income tax, when the amount paid was actually $12,161

 
5 Replies
JulieR
New Member

Why does TT allow only $3961 deduction for state income tax, when the amount paid was actually $12,161

Due to Tax Reform, Schedule A deductions for taxes, including state and local income tax and property taxes, is limited to a total of $10,000 for 2018 returns.
marieyoung120
New Member

Why does TT allow only $3961 deduction for state income tax, when the amount paid was actually $12,161

Julie, I understand the change. Why, then, only $3961 rather than $10,000? Also, I just noticed that the same thing happened on the 2017 return - $3,418 deducted when $11,520 was paid. This was before the new tax law.
Critter
Level 15

Why does TT allow only $3961 deduction for state income tax, when the amount paid was actually $12,161

Review the worksheet on this situation to see how the SALT deduction is calculated.
VolvoGirl
Level 15

Why does TT allow only $3961 deduction for state income tax, when the amount paid was actually $12,161

What is the state income tax paid from?  W2 withholding, state tax due paid, state estimated payments, etc.

2018 deduction  is totally new so it shouldn't be the same thing or reason you saw on 2017.

What is your filing stauus?  MFS is limited to 5,000 tax deduction.  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.  You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

So the amount over 10,000 shows up as a negative number.  It doesn’t mean anything and doesn’t go anywhere.  Just for your info to let you know how much you can’t deduct this year.
marieyoung120
New Member

Why does TT allow only $3961 deduction for state income tax, when the amount paid was actually $12,161

state = CA. state tax paid = $12,161. Yes, I know the limitation is new; I pointed out the issue last year to make the point that the problem appears to be with TT. Filing status MFJ with dependent. No property tax. There is no negative number anywhere.
I appreciate your taking time to try to help me.
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