state and local taxes greater than $10,000

[cpshankar]

What does it mean in the summary of Deductions where the line states: State & Local Taxes Greater than 10,000 and the amount is a negative amount making the total deduction smaller?  

My turbotax shows (-$247) -- what does this mean?

[KrisD15 · Accepted solution]

Because of the SALT (State And Local Tax) limit, Taxpayers are only allowed to claim up to 10,000 of state tax they pay each year. 

This includes Property Tax and State & Local Income tax.

It sounds like you paid 10,247 in 2022, and the program is alerting you that since only 10,000 is allowed, 247 will be subtracted from that amount and reported on Schedule A.

IRS TOPIC 503

[cpshankar]

gotcha - thanks a bunch.  I was scratching my bald head!  I will recheck schedule A entries.

[Taxee1]

What does it mean in the summary of Deductions where the line states: State & Local Taxes Greater than 10,000 and the amount is a negative amount making the total deduction smaller?  

My turbotax shows (-$9800) -- and I live in a state that does not have any state or local income taxes!  Can someone help me interpret this and why it's removing so much from my deduction total?  Kind of disconcerting - thanks for any help!

[KrisD15]

State and Local Income taxes include property tax and sales tax.

Look at your Schedule A with your tax return Form 1040. 

Look at lines 5a-5e

(Note that you must select "Itemize Deductions" rather than taking the Standard Deduction to see Schedule A)

To switch back and forth, select "Done with Deductions & Credit" and the option will be shown

HERE is how to preview your 1040 and Schedule A

Desktop users switch to FORMS 

[Taxee1]

Thank you @KrisD15  for the quick reply - so I am guessing because I itemized and had more than what was allowed (maybe it was 19800 in property taxes and sales taxes) they backed out that 9800 to get me back to the 10000 cap?  That - while not intuitive - would make sense.

[DawnC]

That would make sense if you entered $19,800 of property and sales taxes.   You should see the $10K deducted on Schedule A with anything over the $10K not deducted.