topic federal deduction in Deductions & credits

federal deduction

Jim2 — Sat, 06 Mar 2021 17:20:50 GMT

Is the 2020 payment of state taxes (and interest) for a n earlier year , because federal refund not reported correctly, deductible?

Re: federal deduction

VolvoGirl — Sat, 06 Mar 2021 17:24:40 GMT

yes if you itemize deductions you can deduct any state taxes paid in 2020 for any year. And state withholding. But there is a max 10,000 limit of State, local, property, and sales tax (SALT) deduction. And you can only deduct Medical/Dental that's over 7.5% of your AGI. And W2 job expenses have been suspended.

FAQ on 2018 changes
https://ttlc.intuit.com/community/tax-reform/help/how-will-tax-reform-affect-my-federal-tax-return/00/27627

Re: federal deduction

VolvoGirl — Sat, 06 Mar 2021 17:28:22 GMT

And some Deductions that have been suspended for 2018-2025
https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-by-tax-reform/00/25565

Re: federal deduction

Jim2 — Sat, 06 Mar 2021 17:52:20 GMT

Is the interest that we also paid the state deductible?

Re: federal deduction

VolvoGirl — Sat, 06 Mar 2021 18:35:48 GMT

No. Not interest or penalties. Only the actual tax paid.

Re: federal deduction

Jim2 — Sat, 06 Mar 2021 18:53:05 GMT

Thanks!