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Should the state taxes I owed in 2022 for 2021, be added to my state and local tax deductible on federal schedule A?

In 2022, I owed say $1000 on my state return for 2021. Should this be added as state and local taxes on my federal schedule A "Taxes you Paid" for 2022 filing?

For my 2022 return, turbo tax only shows my state tax witholding from my W2 . Since turbotax imported my 2021 return, I would have expected it to automatically import whatever info it needed from prior year. But after talking to a friend I realized this is not happening. I have been using turbotax for several years now. Does that mean I overpaid all that time? I realize now with SALT cap, it might not matter for some people. 

 

Btw, it took me 40 minutes to figure out how to get to the page to create a new post after spending 20mins not able to find my answer on these forums. Extremely annoying that the website just takes you in a loop of website links to ask questions. 

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3 Replies

Should the state taxes I owed in 2022 for 2021, be added to my state and local tax deductible on federal schedule A?

You don’t deduct state tax owed. You deduct tax actually paid. TurboTax has no way of knowing in 2022 if you paid what you owed for 2021 in 2022. 

Should the state taxes I owed in 2022 for 2021, be added to my state and local tax deductible on federal schedule A?

I would expect turbotax can simply make that one of the walkthrough questions. "Hey, I see you owed $1000 in state taxes last year, let me walk you through to see if that can change your deductible". Like they do it for other imported items. 

My friend used H&R block and his numbers were different which made me realize something is not right with my tax returns. If H&R block can handle this correctly, then why can't turbotax? What is the difference between the two calculations? How do I make turbotax account for this tax paid?

JamesG1
Employee Tax Expert

Should the state taxes I owed in 2022 for 2021, be added to my state and local tax deductible on federal schedule A?

We would have to see both calculations to determine the difference.

 

You may deduct state income taxes paid on Schedule A Itemized Deductions.

 

Enter the state income taxes by following these steps:

 

  • Select Federal down the left side of the screen.
  • Select Deductions & Credits down the left side of the screen.
  • Scroll down to Estimates and Other Taxes Paid.  Select Show more.
  • Select Start / Revisit to the right of Income Taxes Paid.
  • Select Start to the right of Balance due on your 2021 state taxes paid in 2022.

@PG999 

 

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