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Is there a cap for the state sales tax deduction or is there an artificial cap in Turbo Tax - refund doesn't change when sales tax greater than $40,000 is entered?
My federal refund does not change when I enter sales tax paid in excess of $40,000. My understanding is that all WA state sales tax is deductible if I have receipts to prove payment of sales tax. If so, it seems that the federal refund should increase with increased state sales tax paid.
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June 6, 2019
10:42 AM
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June 06, 2019
10:42 AM
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Is there a cap for the state sales tax deduction or is there an artificial cap in Turbo Tax - refund doesn't change when sales tax greater than $40,000 is entered?
If you are subject to Alternative Minimum Tax, your deduction for state and local taxes is capped or eliminated altogether.
June 6, 2019
10:42 AM
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Is there a cap for the state sales tax deduction or is there an artificial cap in Turbo Tax - refund doesn't change when sales tax greater than $40,000 is entered?
There is not a cap on your sales tax deduction. However, if you make too much money, there may be a phase-out (reduction of) your total itemized deductions based on your adjusted gross income.
Click this TurboTax article Tax Changes You Need to Know for 2017 for more information.
June 6, 2019
10:42 AM
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