Adding sales tax will not reduce the tax which we owe?

[barathvasu]

I am from Texas, currently I owe a lot in tax $15,000 due to my Traditional IRA to Roth Conversion. Initially I didn't add the sales tax but after adding the sales tax the tax I owe never reduced from $15000. Is this expected? Any thoughts what I am missing?

[DoninGA]

Sales taxes paid is entered on Schedule A as an itemized deduction subject to the SALT maximum of $10,000 for State, Local income taxes or Sales Taxes, State and Local real estate and State and Local personal property taxes (SALT)

The total of all your itemized deductions on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

Standard deductions for 2022

Single - $12,950 add $1,750 if age 65 or older
Married Filing Separately - $12,950 add $1,400 if age 65 or older
Married Filing Jointly - $25,900 add $1,400 for each spouse age 65 or older
Head of Household - $19,400 add $1,750 if age 65 or older

[Mike9241]

two possibilities. 1) your standard deduction is greater than your itemized deductions or 2) your taxes on schedule A are already over $10,000

standard deduction for 2022 MFJ   $25,900

There is an additional standard deduction of $1,400 for each of the following on a joint return

Taxpayer over 65

Spouse over 65

Taxpayer blind

Spouse blind

[barathvasu]

Thanks for the details! I haven't itemized because Turbotax stated, Standard deduction is better.

12) Standard deduction or itemized deductions (from Schedule A) in 1040 is $25,900 

Are you stating the above number should be less than 10,000? If I go with standard deduction how will this be 10,000?

[LindaS5247 · Accepted solution]

If you take the standard deduction then you do not get to take the sales tax deduction because that is deducted under Itemized Deductions.  

TurboTax will determine if you had itemized deductions great enough to exceed the standard deduction of $25,900.  When you added your sales tax it must not have put you up over the standard deduction and so your tax was not reduced.