Why did I got a negative deduction due to my state and local tax is greater than $10000

[PHDOBBY]

I have that negative number on the step by step summary of deductions even though I am taking the standard deduction.  It is not calculated in the total, but it is listed. Why?

[RobertB4444]

The deduction for taxes on your schedule A (the form for itemized deductions) is only allowed to be $10,000 or less. 

When you have more than $10,000 in deductions then your schedule A says "Total amount of deduction" and has all of the taxes that you entered and then a negative for the amount over $10,000 and then the allowed deduction for $10,000. 

The negative number is just the amount that you're not allowed to deduct.

[ShariN]

This is still a problem!! All I entered was 5,820 for property taxes. How is this greater than $10K ?

[JillS56]

The State/Local tax section includes more than just property taxes.   These are the line items in the State/Local tax section of Schedule A:

All of these items cannot exceed $10,000.  Depending on your income, the state/local income tax amount may be enough together with the taxes that it puts you over the $10,000.    The state/local income tax amount is not an amount you enter but an amount that TurboTax calculates based on the income you have entered.

Look at Line 7, what amount is on Line 7 of this section.  That is the amount of Taxes You Paid that are deductible or go to the total of itemized deductions.   If you have the standard deduction, this form does not matter.  

@ShariN

[ShariN]

Thank you. I did finally find that number and figured it out. 

[nediB]

MSP3,

No wonder you're so confused.   You even think Trump was the cause of the $10,000 limit.  Ever hear of Pelosi and Co?    How are things going now with your new man, Joe Inflation/Gas Prices/Afghanistan??

[lofting101]

Why does my state and local taxes greater than $5000 show a negative amount?

[boidster]

Clearing up a confused person talking about others' confusion. Tax Cuts and Jobs Act, passed into law December, 2017, limited SALT deduction to $10,000. Sponsored by Rep. Kevin Brady (R-TX). Passed House and Senate with only (R) support (bipartisan votes against). Signed into law by President Trump 12/22/2017.

TurboTax needs a (?) icon next to the number for 2022.

[KC562]

Why am I getting a negative number when i took the standard deduction??? It is only supposed to add back over 10k if you itemize….

[JulieS]

No, the negative deduction you see on your Deductions summary in TurboTax does not appear on your tax return and will not affect your final result. 

The negative figure is the amount that would be backed out of your total state and local taxes to arrive at the allowed deduction for line 5e of Schedule A. 

It appears on the Deductions summary if you entered more than $10,000 in state and local taxes, even if you end up using the standard deduction. 

 

[KC562]

That is the problem....it directly affected the tax due amount by the exact amount being backed out....WHY???  Is it  a glitch in turbotax?  I was breaking even until turbotax backed out that number and now I owe that amount......doesnt make sense

[AmyC]

I created a return with SALT deductions over $10,000. This does not affect my refund or amount due. It simply shows the calculations. Your summary shows the overage and it sounds like a coincidence that the numbers match. TurboTax should not have ever gone over the $10,000 while calculating. 

@KC562 

[Maddie2012]

My 2021 real estate and state and local taxes were over 12,000 but "0"was removed. However in 2022 my real estate and state and local income taxes are 12,700 and turbo tax is deducting -3,112. 

Why no reduction in 2021 and why is the 2022 reduction more that 2,700?

[JulieS]

Yes, ever since 2017, any time your real estate taxes plus your state and local taxes exceeds $10,000 ($5,000, if married filing separately), the total deduction is limited.

This was true in 2021, but it may have showed differently in the deduction summary. If you check  Schedule A the deduction is limited to $10,000 on line 5e. 

If you paid taxes to a foreign country and generation skipping tax (GST) imposed on certain income distributions, you can deduct that in addition to the $10,000 limit. 

As far as the -3112 reduction you must have $412 in some other type of state or local tax. This may include:

• State and local tax withheld from your income
• State and local sales tax
• Personal property tax paid (usually on a vehicle)

[adhande]

Can someone list all the items get that get included in the state and local tax is greater than $10000, thanks