As I understand it, I can deduct my State wage garnishment on my Schedule A. But, I can't find anywhere to do that on TurboTax. It runs through the long deductions and credits list and nothing seems to correspond to this.
Where do I enter a wage garnishment under personal deductions?
Thank you!
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What? Not sure what gives you the idea that you can deduct something for having your wages garnished. Are your wages being garnished for back taxes? Child support? Something else?
Wages are being garnished for back state taxes.
I spoke with a "tax expert" online earlier today that said I could deduct state wage garnishments and bank levies for back taxes on my Schedule A personal return.
Also, when I look at the IRS site it seems to say the same thing.
No deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law except in the following situations.
Certain amounts that constitute restitution.
Certain amounts paid to come into compliance with the law.
Amounts paid or incurred as the result of certain court orders in which no government or specified nongovernmental agency is a party.
Amounts paid or incurred for taxes due."
No, the wage garnishment is not an itemized deduction on Schedule A.
Go to IRS Publication 529 Miscellaneous Deductions for fines and penalties which are not deductible on page 7 - https://www.irs.gov/pub/irs-pdf/p529.pdf#page=7;
Ok. I still haven't found anything that says this on the page you attached.
How about on the State return?
I'm confused why the accountant I paid to ask this question earlier today told me that it was deductible on Schedule A.
This is only for a federal tax return which uses Schedule A. Not a state tax return.
How a particular state would handle a wage garnishment on a state tax return would be based on the State tax code.
Thank you for your help!
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