topic Itemized deductions - state and local taxes in Deductions & credits

Itemized deductions - state and local taxes

dvulture — Mon, 09 Mar 2026 09:21:35 GMT

I am a resident of Nebraska. Our state law reduces the state itemized deduction by the amount of total state income taxes, even though the federal deduction is limited to $10,000. I want to use sales taxes, even though it slightly reduces my federal deduction, as it saves more in state taxes. But Turbo Tax 2020 won't let me use the sales tax, apparently because it would slightly increase my federal taxes. How can I override the use of state income tax and use state sales taxes for my federal deduction?

Re: Itemized deductions - state and local taxes

MaryK4 — Wed, 02 Mar 2022 02:34:32 GMT

Can you clarify if you get the screen you see below after you enter your Sales Tax? @dvulture

Re: Itemized deductions - state and local taxes

dvulture — Wed, 02 Mar 2022 05:42:13 GMT

Yes, this screen appears, and I check the circle that says "use the state sales tax". Then I finish the section and the program uses my state income tax numbers for the total deductions instead.

Re: Itemized deductions - state and local taxes

ErnieS0 — Thu, 03 Mar 2022 02:40:20 GMT

To choose the sales tax deduction in TurboTax CD/Download:

Tap Forms in the top right next to Flags
In the left column (Forms in My Return), tap Tax & Int Wks
Go to line 1j and check the middle box (it looks like Greater amount, but it's actually Sales taxes)

Re: Itemized deductions - state and local taxes

dvulture — Sat, 05 Mar 2022 05:14:32 GMT

Yes, this worked and then produced the amended returns that I needed. Not sure why it wouldn't work when I tried to start at "Amend a Return", but I have my answer. Thanks.