1099G first time filing Married and SALT CAP
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Returning Member

1099G first time filing Married and SALT CAP

Hello,
It’s my first time filing a joint return for 2019 year. My partner and I each received 1099gs in a high tax state. Trying to figure out how much of our 2018 state refund went over the 10k SALT cap.

 

Do we combine our state and local income taxes and real estate taxes together and figure out how much of our state refunds went over 10k, or 20k?

I ask because we each filed single and itemized last year so we each had the 10k cap technically. So do we combine that 10k benefit x 2 to 20k and calculate how much of our combined refunds went over that amount?

 

Or do we calculate how much of our combined refunds went over 10k since that’s the cap for those married filing jointly.

 

I’m trying to fill out the SALT Refund Worksheet, Schedule 1. My state and local taxes and real estate taxes did not go over the 10k but his did. If I combine our numbers based on a 10k cap, then neither of our state refunds are taxable. However, if I combine our numbers based on a 20k (since we each received a benefit of 10k as single filers), then we owe a lot because our state refunds are taxable. 

3 Replies
Level 15

1099G first time filing Married and SALT CAP

Your 2018 state refunds are taxable income for 2019 if you itemized for 2018. 

 

You are getting confused about the SALT cap.  The SALT cap for 2019 means if you itemize for 2019, you will not be able to deduct more than $10,000 total for 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.**
Returning Member

1099G first time filing Married and SALT CAP

Thank you for your reply. Yes I do understand that, but trying to figure out how much of our refunds are taxable. I’ve combined both of our amounts on our 1099gs but not sure whether to apply it against a 10k Benefit or 20k benefit since we each were able to get a 10k deduction as single filers last year.

Level 15

1099G first time filing Married and SALT CAP

You are still confused.    You are still not understanding that there is a difference between what is taxable for 2019 and what was deductible for 2018, and what will be deductible for 2019.  You do not get to choose how much of your 2018 state refund is taxable.  You just enter the amounts and let the software do your calculations.

**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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