GA QEE credit and federal SALT deduction

[Padaven]

I have a Georgia QEE credit and I am not over the federal 10K limit for SALT deduction. The guidance given by the organization (GOAL) I have donated through is "If you did not reach the $10,000 maximum in SALT (state and local) tax deductions, you may deduct your GOAL contribution (up to that $10,000 SALT cap). In this situation, please enter the contribution in the Federal Deductions & Credits section in order to take a deduction for your GOAL contribution as “additional state income taxes paid.”" Where in Turbotax do I enter this "additional state income taxes paid".  And how do I avoid this causing a problem when I do the State return in turbotax?

[DavidD66 · Accepted solution]

To enter the portion of your QEE contribution as a federal deduction, click on the Search icon:

• Type in "Itemized Deductions" and hit Enter
• Click on "Jump to Itemized deductions"
• On the screen with "Your tax breaks" scroll down to "Estimates and Other Taxes Paid"
• Next to "Income Taxes Paid" select Start or Revisit
• Scroll down to "Other Income Taxes Paid in 2022" and select "Payments for 2020 or a prior year...
• Select "Georgia" and enter the amount that will get your state and local tax deduction up to $10,000

Note: Obviously this was not a 2020 or prior year payment; however, you don't want the payment to flow from your federal to your state return as a payment for 2022 taxes, so enter it as a 2020 payment.

Because you are deducting the amount from your federal tax, and getting a tax credit on your Georgia tax, you will have to deduct the amount deducted on your federal tax from your Georgia Income.  To do so, while in your Georgia return, go to "Income" and click on Edit.  Scroll down to the bottom of the page and select "Other Subtractions from Georgia Income".  Enter a description such as "QEE Credit Deduction on Sch A" and then enter the amount.