topic SALT deduction in Deductions & credits

SALT deduction

WTCINSD — Thu, 13 Mar 2025 23:22:42 GMT

While doing my taxes, I have $8,072 in property taxes and my federal amount says I've maxed out my SALT. I've changed this amount to a smaller number and the software still tells me I've maxed out my SALT. I know I am itemizing so changing the value of my SALT should impact my federal return as it does for my state return.

Re: SALT deduction

VolvoGirl — Thu, 13 Mar 2025 23:25:46 GMT

You have other taxes. There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". 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. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

Re: SALT deduction

WTCINSD — Thu, 13 Mar 2025 23:52:40 GMT

When I remove the property tax altogether, still no change on my federal return, can't figure out what else there considering SALT

Re: SALT deduction

VolvoGirl — Thu, 13 Mar 2025 23:57:26 GMT

Maybe your other state taxes are 10,000 or more.

State and local taxes paid are:

-any state withholding from your paychecks, retirement checks, unemployment checks, etc.

-a state tax due (for any year) you paid last year

-any state estimated tax payments you made during year including an overpayment applied from last year

-any local taxes withheld on your checks like SDI in box 14 or 19 on your W2

Re: SALT deduction

ThomasM125 — Fri, 14 Mar 2025 00:03:03 GMT

State income taxes would be included in the SALT deduction. That can come from state income taxes withheld from your wages, state estimated taxes paid in the tax year you are working on or state taxes paid in that tax year on your state tax due from your state income tax return from the previous year.

Also, if you choose to deduct sales taxes in lieu of state income taxes, they would be a component of your SALT deduction.

Re: SALT deduction

WTCINSD — Fri, 14 Mar 2025 00:04:57 GMT

OK, my state withholding alone is over 10g, so that is SALT as well? Now that makes sense now, thank you!