Does Turbotax calculate the state and local income taxes (line 5a) right on Schedule A itemized deductions?

[manbeing]

My understanding is the line is the sum of state and local income taxed I paid in 2019. that's it, but somehow, turboxtax added more than $4,000 on the line. What else did TurboTax add?

I have used TT for 10 years, so I checked all previous 10 years tax returns. The numbers on line 5a never match the total I paid for state and local income taxes. It was always couple hundred dollars more than the actual taxes withheld.

why??

[VolvoGirl · Accepted solution]

State and local taxes paid are:

any state withholding from your paychecks, retirement checks, unemployment checks, etc.

a state tax due you paid last year

any state estimated tax payments you made

any local taxes withheld on your checks like SDI in box 14 or 19 on your W2 - those will transfer automatically from your W2.

[manbeing]

Do the state taxes include the taxes I owe (haven't paid) for the dividends and interests I received in 2019?

[VolvoGirl]

No.

[manbeing]

Got it! I added the sui and last year's state due back , and then  the numbers match.

Thanks!

[VolvoGirl]

Whew!  Glad you found it and posted back.

[jansenb1965]

I'm having a similar issue.  Last year, I owed about $5k in state taxes.  I withheld $3k so I paid $2K.  I got the $3k deduction last year so I know I only get the $2k this year for 2019.  I also withheld about $2k this year.  So that brings my total 2020 deduction to about $4k.  I have no local taxes or SDI on my w-2.  Yet TT is showing a deduction of $6k and can't figure out where that extra $2k is coming from.  Any ideas?

[MarilynG1]

@jansenb1965 When you View/Print/Save your return, check your State and Local Income Tax Deduction Worksheet (screenshot).

Sales Tax is also included in the calculation.

Click this link for more info on the SALT Deduction.

[jansenb1965]

thanks for helping but... I don't have that worksheet in my return.  What's interesting is the amount I think it's off by is the exact amount I paid my state last year (after withholding).  So the total deduction is:
2019 Tax Owed after withholding
+ 2019 Tax Owed after withholding
+ 2020 withholding

I need to edit this amount and I can't.  I'm using the online version of premier.

[KrisD15]

I think you are referring to your Schedule A for your 2020 Tax Year return. 

Click Federal

Click Deductions & Credits

Scroll down and click Show more after "Estimates and Other taxes Paid"

Scroll down and click Start (or Revisit) next to Income Taxes Paid

Scroll down and check the entries for 

2019 Refunds Applied to 2020

     2019 refund applied to state taxes

     2019 refund applied to local taxes 

Other Income Taxes paid in 2020

     Balance due on your 2019 State

     Balance due on your 2019 Local 

Line 5a of Schedule A should report State and Local Income taxes paid in the tax year

[taxes99]

Reviving this topic...

filing 2020 taxes

I added CA tax paid during 2020 form W2, SDI/VPDI, and taxes paid in 2020 for 2019 return.

It's still $40 off from what TT put in box 5a.

What else I may be missing? Thanks.

[CatinaT1]

Did you have a prior year state balance due?

[VolvoGirl]

Did you review this whole thread?  Is Turbo Tax $40 More than you add up or less?  Any state withholding 1099 forms?  Did you make any estimated payments?  Only those paid in 2020.  

[taxes99]

yes, I reviewed the thread. Still not clear.

I had balance due for 2019 taxes, and I included that into calculation.

TT was 40 more, but now that I'm redoing calculations, it's actually $4 less, so at least it's closer, but still not clear why it's different. 

But on the other hand, instead of subtracting points for paid off mortgage (which I couldn't deduct on federal), TT added it to column C of CA Adjustments for Residents as an addition and it actually works against me. I find it that every year I have to go manually through all the forms to make sure it's doing the right thing, and have found errors. Is that everyone's experience?

[BillM223]

@taxes99

There could be all sorts of tax payments:

Estimated tax payments (1040-ES on the federal, varies on the states)

Overpayment from 2019 applied to 2020

An extension payment made in 2020

Withholding on 

• Forms W-2, W-2G,1099-R, 1099-MISC, 1099-NEC, 1099-G
• K-1
• 1099-INT, 1099-DIV, 1099-OID
• SSA-1099
• 1099-B

Prior year taxes paid in 2020