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Level 2
March 6, 2021
Question

federal deduction

  • March 6, 2021
  • 1 reply
  • 2 views

Is the 2020 payment of state taxes (and interest) for a n earlier year , because federal refund not reported correctly, deductible?

    1 reply

    VolvoGirl
    Level 15
    March 6, 2021

    yes if you itemize deductions you can deduct any state taxes paid in 2020 for any year.  And state withholding.  But there is a max 10,000 limit of State, local, property, and sales tax (SALT) deduction. And you can only deduct Medical/Dental that's over 7.5% of your AGI.  And W2 job expenses have been suspended.

     

    FAQ on 2018 changes
    https://ttlc.intuit.com/community/tax-reform/help/how-will-tax-reform-affect-my-federal-tax-return/00/27627

    VolvoGirl
    Level 15
    March 6, 2021