This is the first year that I have had to pay both federal and state. Looking at the analysis summary for deductions I average about 37,000 in deductions for the past 5 years, but this year it was only 24,000, but I had all the same deductions... It's almost like Turbo Tax didn't include something in my deductions.
One of the major changes in the Tax Cut and Jobs Act of 2017 was to cap the SALT taxes (State And Local Taxes) to $10,000. Therefore if your income or sales tax, your real estate tax and any personal property taxes added up to more than $10,000, that amount was reduced. This has causes a lot of taxpayers to see big differences year over year.
Please see https://www.irs.gov/newsroom/individuals for a list of the changes.
Still have questions?Make a post