Schedule A tax that could have been deducted

[sbpatel2009-gmai]

Hello, I am trying to determine how much state/local sales tax I could have deducted from my state/local income taxes in line 5a of Schedule A.  How is that typically determined?

[xmasbaby0]

The state and local tax you can deduct on schedule A is capped at $10K.

[VolvoGirl]

There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

State and local taxes paid are:

any state withholding from your paychecks, retirement checks, unemployment checks, etc.

a state tax due you paid last year

any state estimated tax payments you made

any local taxes withheld on your checks like SDI in box 14 or 19 on your W2 - those will transfer automatically from your W2.

[sbpatel2009-gmai]

Thanks for the rapid reply, Ms. VolvoGirl!  I wanted to clarify that the question is how to determine "Total state and local general sales taxes you could have deducted on Schedule A, line 5a".  For context, I already have Schedule A completed from 2021.  Now, I'm trying to complete 1040 for 2022.  

I think the response you provided was to determine "Total deduction for state and local taxes (2021 Schedule A, line 5e)"

[VolvoGirl]

Oh, did you get a 1099G for a state refund and need to know how much is taxable?  It should be straight forward.  What is it asking you for?  How much was W2 state taxes and any state tax due you paid?

[VolvoGirl · Accepted solution]

Is it asking you for the total of all your payments and withholding?  

[sbpatel2009-gmai]

Thank you again for the follow-up, and my apologies for not explaining the reason for my query before.  I suppose that would have helped. 

Michigan did not send me a 1099-G.  I think MI is one of the states that no longer issues a 1099-G.  I am trying to determine the taxable component of my refund for 2022. 

[fanfare]

The state sales tax is automatically calculated based on your state and income.

Or you entered from your own records a specific amount.

you have to take it from your prior tax return schedule A .

If you used the same tax software last year, the import will/should find the amount.

If it's not working, PM me and I will tell you about tax prep software that does it correctly.