topic While federal law limited SALT deductions to $10,000 does California also limit the deduction? It would be illogical for CA to do so given its constituents. in State tax filing

While federal law limited SALT deductions to $10,000 does California also limit the deduction? It would be illogical for CA to do so given its constituents.

adeinhardt — Sat, 01 Jun 2019 18:09:56 GMT

My itemized worksheet for California state taxes shows my SALT deduction is limited to $10,000 which I find surprising. The state of California pushed for not limiting the deduction when the federal tax law was being overhauled but now they are saying we can only deduct $10k on the state itemized deduction? This makes no sense and I hope its not true as I estimated my state taxes on the assumption i would receive the deduction.

Aaron

For California, anything that was deductible on a state r...

DDollar — Sat, 01 Jun 2019 18:09:57 GMT

For California, anything that was deductible on a state return last year is still deductible.

Federal law limits your state and local tax (SALT) deduction to $10,000 if single or married filing jointly. Although California does not allow a deduction of state and local income taxes on your state return, California does allow deductions for your real estate tax and vehicle license fees without limit.

You will have to complete your Federal Schedule A, even if taking the Standard Deduction in order to itemize your California State tax return.