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jansenb1965
Returning Member

How does Turbo Tax calc the state and local tax deduction?

My return is showing a deduction $2k higher than the 2020 withholding amount and 2019 paid amount.
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3 Replies
JoannaB2
Expert Alumni

How does Turbo Tax calc the state and local tax deduction?

You can enter the total sales taxes from your receipts for the year, If the total sales taxes paid were more that your income tax.Turbo Tax will automatically select the higher deduction.

 

The 2017 Tax Cuts and Jobs Act limit the deduction for taxes on Schedule A.  The total amount you are claiming for state and local sales, income, and property taxes cannot exceed $10,000.

 

jansenb1965
Returning Member

How does Turbo Tax calc the state and local tax deduction?

Thanks but this is not about sales tax.  It's about state income tax deductions which seems to be doubled on my return and I can't edit it.

How does Turbo Tax calc the state and local tax deduction?

Two choices:

 

1)  Go back to the Income section and edit every form type that had withholding showing for it...to check what is actually in each of those forms for state withholding...W-2, W-2G, 1099-R,  unemployment 1099-G are most common.  Then check the Estimated taxes section to make sure you did/did not enter any estimated tax payment entries.  (Careful if you entered a 1099-R...boxes 12,13,14 were changed to 14,15,16 for 2020, and not all issuers updated their forms to the "proper" 2020 format)

 

or

 

2)  Go to the Print Center and download a PDF file of your tax return...but select the one with ALL forms and backup worksheets.  Open that PDF and look for the Federal "Tax Payments Worksheet". That worksheet will break down all your entries for state withholding and payments, broken down by form-type.  Look for something you don't expect there for some form, or perhaps a 2019 balance due for state you paid in 2020...Then go to that section and dig into it in detail to find the "problem"....unless you find the 2k extra is proper?   

 

You'll probably have to pay for the software to get that PDF file...unless you've already paid.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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