Hello - I'm a little confused how TT (Deluxe desktop) handles the sales tax deduction. I've included some screen shots to help with my questions. I am given the option to deduct either state and local income taxes OR the sales tax I paid during the year--but not both. As you can see in picture, I selected "the larger deduction (Recommended" option which appears to be the state and local income tax deduction ($9,220). When I get to the summary page (picture attached), I see the Sales Tax amount of $885. Is TT using the sales tax of $885 instead of the state and local income tax deduction of $9,220?
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You won't necessarily see the result from the input screens or the summary page. There is a known issue where the "Deductions & Credits" summary page may show a sales tax number, even if it isn't being used for your actual return. Since you are using a Desktop version, you can check to see what deduction has been used by going to Forms Mode - click Forms at the top of your screen.
From the list of Forms shown on the left of the Forms screen, find and click on Schedule A. There, you can see which items are included in the total for Taxes You Paid, and whether you get the benefit of itemizing your deductions.
See this TurboTax tips article for more information about Schedule A and itemizing your deductions.
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