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How can I find out if I qualify for state and local income tax deduction? and if I don't how do I unselect it?

on the state and local income tax deduction question of how do you want to calculate I selected IRS tables. Said I made no large purchase but still asking me to choose. the recommended says 2940 deduction
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Accepted Solutions
Vanessa A
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

How can I find out if I qualify for state and local income tax deduction? and if I don't how do I unselect it?

If you are itemizing your return, you generally would qualify to deduct either your state and local income taxes or  your state and local sales tax.  If you made no large purchases, generally your state and local income taxes will be higher than your sales tax.  The $2,940 is the sales tax amount that the average person in your city and state would pay in the year with similar income.  To unselect this go back and choose to use state and local income tax instead of the IRS table. 

 

If you are NOT itemizing your return, then this will not be relevant in the end.  In order to benefit from itemizing your return, you would need to have overall itemized expenses greater than your standard deduction. Itemized expenses include mortgage interest, gambling losses within limitations,  charitable contributions, state and local taxes up to $40,000, medical expenses in excess of 7.5% of your AGI and federally declared casualty and losses.  

 

 

The 2025 Standard Deductions are as follows:

  • Married Filing Joint (MFJ)              $31,500
  • Married Filing Separate (MFS)      $15,750
  • Head of Household (HOH)             $23,625 
  • Single                                                 $15,750                                

Blind or over 65 and MFJ or MFS add $1,600

Single or HOH if blind or over 65 add $2.000

Standard Deduction vs. Itemized Deductions: Which Is Better?


 

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1 Reply
Vanessa A
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

How can I find out if I qualify for state and local income tax deduction? and if I don't how do I unselect it?

If you are itemizing your return, you generally would qualify to deduct either your state and local income taxes or  your state and local sales tax.  If you made no large purchases, generally your state and local income taxes will be higher than your sales tax.  The $2,940 is the sales tax amount that the average person in your city and state would pay in the year with similar income.  To unselect this go back and choose to use state and local income tax instead of the IRS table. 

 

If you are NOT itemizing your return, then this will not be relevant in the end.  In order to benefit from itemizing your return, you would need to have overall itemized expenses greater than your standard deduction. Itemized expenses include mortgage interest, gambling losses within limitations,  charitable contributions, state and local taxes up to $40,000, medical expenses in excess of 7.5% of your AGI and federally declared casualty and losses.  

 

 

The 2025 Standard Deductions are as follows:

  • Married Filing Joint (MFJ)              $31,500
  • Married Filing Separate (MFS)      $15,750
  • Head of Household (HOH)             $23,625 
  • Single                                                 $15,750                                

Blind or over 65 and MFJ or MFS add $1,600

Single or HOH if blind or over 65 add $2.000

Standard Deduction vs. Itemized Deductions: Which Is Better?


 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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