It says I maxed out the federal $10,000 deduction for itemized state and local taxes, but I didn't enter that amount. Where does it come from?

[Ashby]

Your itemized deductions for state and local taxes include:

• Real Estate Taxes
• Personal Property Taxes (ex. car tax)
• State Income Taxes

Most likely, your state withholdings on your W-2(s) and real estate taxes from your 1098 mortgage statement maxed out the $10,000 limit. 

Last year's tax reform introduced a new $10k limit on these deductions. In years 2017 and earlier, you were not capped.

[kdirisala]

Hi,

I have a mortgage interest of 9141 and property ( real estate) taxes of $9664 ( school and to the county). With all other small items it totals $20,697.
I understand that my standard deduction of $27700 is the best for 2023.
why does the TurboTax software, say your standard deduction of $27700 is better compared to itemized $11000 something. Why is it not considering the total $20697 while calculating itemizing??? It’s not taking the mortgage interest into consideration???

am I missing something????

thank you

[MayaD]

State and local taxes includes:

• State, local, and foreign income taxes or state and local general sales taxes in lieu of state and local income taxes
• State and local real estate taxes
• State and local personal property taxes

For more information check: Deductible taxes

[kdirisala]

Thank you for the reply. So we cant itemize mortgage interest?

[JamesG1]

You may report home mortgage interest, but it sounds like the software has chosen the Standard Deduction of $27,700 over the itemized deductions.    

Home mortgage interest is reported on line 8 of Schedule A Form 1040.  

State and local taxes are reported on line 5 of Schedule A Form 1040.

@kdirisala