Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?
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New Member

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

 
8 Replies
Level 15

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

Did you enter any property tax for your home?
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
New Member

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

Yes.  But property tax is not income tax, is it?
Level 15

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

Property tax counts towards the $10,000 limit for the deduction of state and local taxes
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
New Member

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

So on the Review, TT asks me to enter Sales Tax Rate -1, instead of 6.5% for WA.  Should I enter 6.5 instead of 1?
New Member

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

Thanks!
Level 15

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

If your sales tax rate is 6.5% then enter that.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
New Member

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

ok.  thanks!!
Level 15

Why is the state/local income tax deduction more than my state sales tax deduction when WA state does not have any income tax? How does TT calculate these numbers?

Please see the section explaining SALT --state and local taxes

https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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