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.
You'll need to sign in or create an account to connect with an expert.
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:
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:
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
acowley1990
New Member
CourtneyDee
New Member
jhmagill1
Level 1
catcook12
New Member
Ed-tax2024
New Member