And I have no idea where this comes from - it shows n/a as last years number so I assume it has something to do with the new tax reform.
Help....
do not worry about it; it is correct. Here is what is occuring.
for the new tax law in 2018, there is now a limit of $10,000 for state and local taxes ('SALT')
you have $8872 in real estate taxes and $8302 in state taxes, plus vehicle registration fees of $1100, which totals $18, 274 in SALT deductions.
All Turbo Tax is doing is reducing that to $10,000 by subtracting $8274.
make sense?
do not worry about it; it is correct. Here is what is occuring.
for the new tax law in 2018, there is now a limit of $10,000 for state and local taxes ('SALT')
you have $8872 in real estate taxes and $8302 in state taxes, plus vehicle registration fees of $1100, which totals $18, 274 in SALT deductions.
All Turbo Tax is doing is reducing that to $10,000 by subtracting $8274.
make sense?
That makes sense,
Living in California now that SALT has a limit my federal taxes are ~3,500K more than they were last year.
Thanks for the help!
I'm in a similar situation as OP. With the 2018 new tax law, my itemized deductions are drastically reduced. I will pay a lot more Federal tax from here on.
Hello. This is confusing as the description say that it does not impact your deductions however it does dramatically which not only increases the federal cost but also increase the AGI so the State return is higher. If I have $50K in deductions and the a -$25K in state and local taxes greater than $10K, my totals deductions are reduced to $25K vs what they were n 2017 which included everything. Can this be correct and the same regardless of where you live?
Thanks. It makes no sense since living in NYC is more costly for property and local taxes than elsewhere so this kinda unfairly raises the tax burden on those who live in costly areas. Not to mention that the state uses the inflated AGI and taxes more too.