State and Local Taxes Greater than $10,000

[EricJLisa]

Hello- under deductions and credits, the line "State and Local taxes greater than $10,000" for the year 2021 it shows "0"; 2022 shows (-$5421).  Why?  What does this mean?

[ThomasM125]

I'm not sure why that number would be negative. You can only deduct up to $10,000 of state and local taxes on your federal return, that is why you see reference to the amount of state taxes over $10,000. Since that amount is negative, it probably means your state and local tax itemized deduction is not limited by the $10,000 threshold.

[SteamTrain]

On my Deductions & Credits Summary page.

it shows 

...................................................................................2021..............2022.....

(stuff on a bunch of lines)

State and local taxes greater than 10,000           ( $0  )             (-$930) 

______________

In my situation, the -$930 represents the $$ amount I paid to the state (or local tax people) that exceeded the SALT limit this year.  This value can limit whether a State refund will be taxed next year...but is needed to know only if you itemize deductions (Federal) this year.

[dhardison]

On my 2024 return, the negative amount shown in the row for State and Local Taxes greater than $10,000 is the amount of tax I paid (sales tax + property tax) that exceeded the $10,000 federal limit.