Solved: My deductions are adjusted down compaired to last year by 12k... and I do not understand why.
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sclaverie
New Member

My deductions are adjusted down compaired to last year by 12k... and I do not understand why.

Turbo tax did not make these adjustments last year and last year they were about the same.  Example, real estate taxes were 5225 adjusted to 2920; state and local taxes from 11982 to 6696.  I don't understand the explanation when I click on what the difference.  I hope this is not calculating standard deductions.

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Accepted Solutions
StacyC
Level 3

My deductions are adjusted down compaired to last year by 12k... and I do not understand why.

There is a new cap/limit for state and local taxes for 2018 due to the Tax Cuts and Jobs Act that was passed in December of 2017. In 2017 and before you could deduct state and local taxes on your federal return without any limit on the amount; beginning in 2018 state and local taxes is limited to a $10k deduction. 

It sounds like this is the difference for you from 2017 to 2018. The total of your real estate taxes and "state and local taxes" (most likely your withholding from W-2s) is $9,616. If you also entered DMV fees or other personal property taxes that would likely be the remaining $384 to get you to the new $10k limitation. 

You can read more about these changes in this comprehensive article: 

https://ttlc.intuit.com/replies/6971774

View solution in original post

1 Reply
StacyC
Level 3

My deductions are adjusted down compaired to last year by 12k... and I do not understand why.

There is a new cap/limit for state and local taxes for 2018 due to the Tax Cuts and Jobs Act that was passed in December of 2017. In 2017 and before you could deduct state and local taxes on your federal return without any limit on the amount; beginning in 2018 state and local taxes is limited to a $10k deduction. 

It sounds like this is the difference for you from 2017 to 2018. The total of your real estate taxes and "state and local taxes" (most likely your withholding from W-2s) is $9,616. If you also entered DMV fees or other personal property taxes that would likely be the remaining $384 to get you to the new $10k limitation. 

You can read more about these changes in this comprehensive article: 

https://ttlc.intuit.com/replies/6971774

View solution in original post

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