topic Major difference in getting the deductions in Deductions & credits

Major difference in getting the deductions

hdhayal — Sun, 12 Jul 2020 21:46:26 GMT

When I am comparing last year with the current year, I see many deductions shown last year but for the current year, it is only taking 24000. For example, It is showing that I was able to deduct state and local taxes but this year it is showing zero. I am married filing jointly

Re: Major difference in getting the deductions

SusanY1 — Sun, 12 Jul 2020 23:22:50 GMT

There has been a change in the way our summary screens display state and local taxes. In 2018 the screen listed the total of all state and local taxes entered into the program, even though the deduction was capped at $10,000. This year, the screen shows the total amount that is being deducted (and will cap at $10,000, when applicable).

If went through the Deductions & Credits section and entered all of your data, the indicator of $24,000 is telling us that your standard deduction was greater than the sum of your itemized deductions, after limitations were taken into consideration.

Re: Major difference in getting the deductions

DT25 — Wed, 15 Jul 2020 13:34:16 GMT

We paid over $15K in property taxes. Everything says married filing jointly the cap is $10K. TurboTax reduced the amount to $6318. Why? And State/Local taxes paid were $8757 but we're only allowed $3682. The cap says the max is $10K. Is the cap of $10K the combination of state/local taxes AND property tax? Our income was almost $30K less in this tax filing but we're paying 50% higher taxes!

Re: Major difference in getting the deductions

SteamTrain — Wed, 15 Jul 2020 13:52:20 GMT

@DT25

Yep...the 10k limit applies to the total of State/local income taxes plus Property/RealEstate Taxes plus Personal property taxes.

On your Schedule A, you'll see that full total on line 5d...then line 5e is the smaller of 5d, or $10,000