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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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.
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?
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:
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