Mississippi state itemized deductions for taxes paid

[rtoler]

Once the $10,000 cap is applied on state deduction, it is suggested to take the credit rather than deduction to accurately reflect the deduction at the state level cap is accurately reflected.  An example is Mississippi below:

Itemized Deductions - Taxes Paid to the State

Taxes Paid Lines 3a through 3c: Taxes Paid State income taxes paid or any other taxes allowed in lieu of federal purposes including withholding taxes on Mississippi gaming winnings, are not deductible as an itemized deduction. These amounts should be subtracted on line 3b. Also, you cannot deduct federal income tax or Social Security tax. Enter the amounts from Federal Form 1040, Schedule A (Section 27-7- 17(3)(a)(i)). Note: Per the Tax Cuts and Jobs Act, there is a $10,000 limitation ($5,000 if married filing separately) on this deduction.

[Opus 17]

I don't understand your question.

Your MI state itemized deduction form lines 3a-3c calculates your state itemized deduction for taxes paid.  You can't deduct MI state income tax on your MI state return.   So line 3a asks for your total federal SALT deduction.  Line 3b asks you to list MI state income taxes.  Line 3c is your allowable MI SALT deduction.

For example, suppose on your federal return you deducted income tax from two states, say Mississippi and Alabama, because you worked in both states.  And you deducted some property taxes.  Your MI state income tax is not deductible in MI, so this calculation takes your federal deduction, substrates the state deduction for MI income tax, which allows you to deduct your AL income tax and your property tax on your MI state return.

I don't see any "credit" or any adjustment for the fact that you might have paid more than $10,000 of state taxes and be limited by the cap.