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

[MarilynG1]

Here's an FAQ on the SALT Deduction to help you. 

These include:

• Estimated Tax Payments to enter 2021 or 2022 state/local estimated payments
• Payments With Extension to enter 2021 or 2022 state/local payments you made with your state or local extension
• 2021 Refund Applied to 2022 if you applied any portion of last year's state/local refund to this year's state or local return
• Other Income Taxes Paid in 2022 if you paid 2021 or earlier state/local taxes
• Property Tax 

Here's more detailed discussion on SALT Deductions.

@adhande 

[byu123]

NO!!!!!  The "negative number" shown in TurboTax is IN FACT SUBRACTED from all the other deductions resulting a SUBSTANTIALLY LOWER deduction, reduced by the "negative number" amount.  IF . . . the amount was just "0" (zero) my deduction would INCREASE by $12,000 saving me $4000+ in taxes.  THIS TOTALLY APPEARS TO BE A "BUG" in TurboTax and how it is calculating that. You can just "do the math" with the other deductions and its apparent the "negative number" is SUBRACTED from the other "positive deduction" amounts resulting in DRAMATICALLY lower deduction amount.?????

[MonikaK1]

If the way the deduction information is displayed in a worksheet is confusing, you can preview your return before filing to review the actual tax forms that TurboTax has prepared from your entries and to find out how your taxes were calculated. See here for details. 

If you have reviewed the forms and still find the results aren't as expected, you can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

Here are the instructions for TurboTax Desktop users:

1. From the black bar at the top of your screen, select Online
2. Click Send Tax File to Agent
3. Click Send on the message that pops up
4. TurboTax will create a "sanitized" copy of your return information with no personal info
5. Post the 7-digit token number here in this thread

We will then be able to see exactly what you are seeing and we can determine what is going on in your return and provide you with an explanation/resolution.

[dmswon]

Get educated.  Republican's set the SALT $10K deduction limit as a giant F-U to blue states.  

[jodiesel]

You're welcome. Now shine my shoes boy!

[oldchev]

Can you elaborate why its limited?

I file married separately but I pay the property taxes, so can my wife also claim the deduction?

What I'm specifically saying is if I pay 10K property tax but can only deduct 5K, but if I file joint we can deduct 10k, then can she deduct the other 5K (Limited of course).?

I need to understand the metrics.

[DawnC]

The SALT deduction (which is either state/local income tax plus property tax OR sales tax plus property tax) is capped at $5,000 for married couples filing separately and $10,000 for all other filers.   In 2017 and earlier, there was no cap.   If you file separately, you can both deduct $5K each, and if you file jointly, you can deduct $10K.    @oldchev 

An example can be found here.

Generally, filing jointly (one tax return instead of two) will give you a bigger refund or less taxes due. You can compare your estimated taxes for filing jointly vs. separately with TaxCaster.   

If you file separately and live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your taxes.

Filing Jointly vs Filing Separately

[MicrosoftBob]

@DawnC When is Turbo Tax going to fix this display bug that's causing a lot of people to believe there's something amiss, and wasting time chasing down something that's not really a problem?  This has been a bug ever since 2018!   What's the best way to report this to the people that can fix it?

(desktop windows version of TurboTax Deluxe)

[Dega0116]

This negative number reduces my deductions and credits.

ok.  so I re-added everything and deducted everything over $10k and it worked out!!

[Dega0116]

mine is supposed to be $69,673.00 plus the negative number it actually subtracts it from the amount.

Last years is wrong aslo.

I re-added everything and deducted the amounts over 10k and it was correct.  The $0 from last year is wrong but it adds up.

[ddranalli]

I agree - the "State and Local Taxes greater than $10,000" showing a large negative number that isn't summed in the column is really confusing.  TURBOTAX please fix this by removing that line from the column if it is not calculated or better explained on that screen.  Very. very confusing.