Montana Itemized Deductions

[Diane in MT]

Our federal taxes in Montana itemized deductions are not being capped at $5000 even though we're filing as "married filing separate on same form".  It's showing $1553 for my husband and $3746 for me which totals $5299.   We had $600 in ES in 2021 as well as payroll withholding.  Help?

[DaveF1006]

If you are strictly speaking about Montana state taxes, the $5000 itemized deduction cap is per person and not combined.  If you filed Married filing jointly, it would have been a $10,000 cap.

If you reported state tax withholdings in a W2 or other tax documents, this is accounted for in your state return.  Also, did you report the State estimated tax payments by going to:

1. federal>deductions and credits
2. Estimates and Other Taxes Paid
3. State estimated taxes for 2021

[ Edited 03/30/22| 05:58 PMPST]

[Diane in MT]

oh gosh...that makes sense.  But now it's the other way. ..not picking up all my husband's withholding from his W-2 of $3496 or our ES payments $600.  Mine is right though. 

[Diane in MT]

ok - I figured it out.  Deduction is limited to tax after non-refundable credits.

Thanks for your help!  Really appreciate it!