I paid state taxes from previous years in 2017. I followed the instructions to claim this under "prior year state or local tax payments". It was the last thing I filled out in turbo tax and it did not change anything on my federal tax refund. My federal tax refund stayed the same. It did reduce how much I owed to my state. Can anyone tell me why that is?
I double checked and my deductions are itemized. There is a Schedule A form and that same total is listen on my 1040 and my tax liability is not 0. Still a little confused as to why that had no impact on my Fed Tax refund. Did I input it in the wrong place?
I just went through it again. The amount is entered correctly on line 7 of the state and local tax deduction worksheet. That total from line 22 of the state and local tax deduction worksheet is correct on line 5 of my schedule A . If I change the $2300 to $1 and let turbotax recalculate my federal return of $65 doesn't change at all.
lines 40, 41 and 45 changed by that amount. it was 2390 total and changed by 2389 when I changed it to $1. line 42 did not change, line 44 changed by $667. My total fed tax was $48,157 married filing jointly.
Yes I do have an amount on line 45 - $375 AMT. Not sure what that is, I have never looked at that before. And yes the amount on line 63 is $48,157. BTW - thank you for all your help!
Thanks Linda. I have one last question. I went back over the last 3 years and haven't had an AMT. We did have an increase in AGI of about $50,000. When I first was reading about deducting state taxes paid for previous years an article stated that it should be place in "miscellaneous deductions". So I first placed the $2300 there. Until I later figured out that was the wrong place to put it. After reading the links you shared it does say high miscellaneous deductions is a trigger for AMT. Could I have accidently triggered that myself by initially placing the $2300 in miscellaneous deductions? Is there a way to back out that trigger on turbotax or could I start all over(start a new tax return) and see if doing that still triggers the AMT? Or am I just barking up the wrong tree?