Question on 2025 Delaware PIT-RSA 5(a) and Federal Sch A 5(a), with estimated tax payments added

[LLLnew]

Hi MaryK4,

Sorry to bother you again for Delaware PIT-RSA item 5(a) & Federal Sch A 5(a).

I added estimated tax payments compared to Example 1. Here is my Example 2:

• 2025 W2 Withholding (DE+NY+SDI+PFL): $2,429 ($114 + $2,260 + $4 + $51)
• 2025 State Estimated Tax paid (DE + NY): $300 ($100 + $200) (different from Example 1)
• 2024 DE Tax return paid in 2025: $922
• 2025 NY Taxes received as credit in DE: $1242

1. Delaware PIT-RSA Line 5a State/Local taxes not claimed as a credit on PIT-RES.

• If you take the Credit for Taxes Paid to Another State (NY) on your DE return, you cannot deduct those same taxes on the DE itemized deduction sheet.
• You must subtract the NY taxes for which you are getting a DE credit.

Calculation:

• NY State Withholding: $2,260
• NY SDI: $4 (Usually deductible as tax)
• NY PFL: $51 (Usually deductible as tax)
• NY 2025 Estimated Tax paid: $200
• Minus NY Taxes received as credit in DE: -$1,242
• Total for PIT-RSA 5(a): $1,273 ($2260 + 4 + 51 + 200 - 1242)
• Result: is this correct?

2. Federal Schedule A Line 5a State and Local Income Taxes (SALT) paid.

• This includes state income taxes withheld (DE + NY) and state tax paid with a return (2024 DE return).
• NYSDI and NYPFL are generally allowable as SALT deductions on federal returns.

Calculation:

• 2025 W2 Withholding (DE+NY+SDI+PFL): $2,429 ($114 + $2,260 + $4 + $51)
• 2024 DE Tax Return paid in 2025: $922
• 2025 State Estimated Tax paid (DE + NY): $300 ($100 + $200)
• Total for Fed Sch A 5(a): $3,651 ($2,429 + $922 + 300)
• Result: is this correct?

[MaryK4 · Accepted solution]

The calculations you provided for both Delaware PIT-RSA and Federal Schedule A are correct, provided the payments were made within the 2025 calendar year.   While your calculated total is $3,651, remember that the federal deduction for State and Local Taxes (SALT) is capped at $10,000 ($5,000 if married filing separately). Since your total is below this, you should be able to deduct the full amount.  Ensure that the $922 payment for your 2024 Delaware return was physically paid (check mailed or electronic transfer) between January 1, 2025, and December 31, 2025.

[LLLnew]

Hi MaryK4,

Thank you so much!! 

Also, it seems that for tax year 2025, the federal deduction for State and Local Taxes (SALT) is capped at $40,000 ($20,000 if married filing separately). Hope I am correct on this.

[DianeW777]

Yes, you are correct on this. The One Big Beautiful Bill Act (OBBBA) increase the amount of state and local taxes allowed when itemizing deductions.

The deduction on itemized deductions has been increased under the One Big Beautiful Bill Act (OBBBA) passed this year.

• STATE AND LOCAL TAXES ... any taxable year beginning in calendar year 2025, $40,000.

Key details regarding the 2025 SALT deduction:

• Married Filing Separately: The cap for 2025 is $20,000.
• Income Phase-Out: The $40,000 cap is reduced for taxpayers with a modified adjusted gross income (MAGI) over $500,000 ($250,000 for married filing separately).
• Phase-Out Floor: The deduction cap will not drop below $10,000 ($5,000 for married filing separately) regardless of income level.
• Duration: The $40,000 cap is effective from 2025 through 2029, increasing by 1% annually, before returning to $10,000 in 2030.
• Requirement: To claim this deduction, you must itemize your deductions on Schedule A
  • Taxes 2025-2026: OBBBA and How it Impacts You