How does TurboTax calculation for Schedule A Line 5a?

[Todd-AH]

Turbo Tax seems to be excluding some of the amounts that I included as state and local taxes paid in 2021 when they calculate line 5a on Schedule A. The amount they calculate for line 5a is a lot less than the estimated taxes and the 2020 state tax balance that I paid in 2021.  Does anyone know why this might be?

[DoninGA]

There is a limit of $10,000 ($5,000 if filing Separately) on the amount of State and Local Taxes plus property taxes paid as itemized deductions on Schedule A.

IRS Schedule A - https://www.irs.gov/pub/irs-pdf/i1040sca.pdf

Line 5
The deduction for state and local taxes is generally limited to $10,000 ($5,000 if married filing separately). State and local taxes subject to this limit are the taxes that you include on lines 5a, 5b, and 5c.

[Todd-AH]

Thank you DoninGA.  I do understand that the limit is $10,000 overall in this section. But that $10,000 limit is applied on line 5e after 5a, 5b, and 5c are added together and checked against this limit.  So my question still stands.  Why would TurboTax not include on line 5a the total of all of the state and local income taxes that I paid in 2021?  Any clues?

[DoninGA]

@Todd-AH 

Just ran a test tax return with state income taxes withheld on a W-2 of $3,000.  State estimated taxes paid in 2021 of $5,000.  Amount paid with a 2020 state income tax return of $3,000.

The total of $11,000 was entered on Schedule A Line 5a.

I would suggest that you return to the sections where you entered the payments and verify that the correct amounts have been entered.

[DoninGA]

Also, if you are using the TurboTax desktop editions, then in Forms mode look at the State and Local Tax Deductions Worksheet (State Tax Ded)

[Todd-AH]

Thanks for continuing to try to help me. I am using the online Premier version.  I confirmed that the amounts that I entered as estimated state taxes into the TurboTax windows are accurate.  But for some reason the total amount of estimated taxes that I paid and recorded are not transferring directly into line 5a on Schedule A.  I also cannot find how to access the State and Local Tax Deductions Worksheet (State Tax Ded) form that you reference, which I believe would help me track down any issues.  Any other suggestions?

[SweetieJean]

Arte all of the estimated taxes paid for state/local?  (Do not include Federal.)

[Todd-AH]

I included only state and local estimated taxes

[Todd-AH · Accepted solution]

Okay I figured it out myself. You can only count the estimated state and local taxes paid in 2021; so not the last installment paid in 2022.  The difference was due to me including the installment that I paid in January 2022 in my calculation. 

FYI - I even spoke to an Intuit/TurboTax support agent (who also consulted with her boss) and after an hour online with them looking at my screen, they were not able to figure this out.  Beware, they even tried to up-sell me to a Premier Live so I could "consult with a Tax expert" about the situation.  Crazy.  This should have been included in the standard online instructions.

[cjsiegel]

Than you so much for the warning.  I came to this site with the subject: Schedule A Line 5a

There should be an explanation of this line without having to go to the community to ask what this is... but here I am, asking (for 2022  not 2021)

[JYA]

Well here I am in 2025, also impacted by the same issue of estimated state income tax payments for prior year not included in the Schedule A line 5a. In my case the issue is moot as with or without the estimated tax payment, the deduction is limited to $10,000. But Turbotax should ask us to enter it and indicate it will be for next year's tax filing input.