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posted Mar 26, 2024 9:39:49 PM

What is the meaning of the numbers in "State and local taxes greater than $10000" line?

 

I am in MA. What does that line mean? I do have a registration fee of $60. But the above shows 0. Does that mean my deduction is too much (greater than $10000), so the registration fee cannot be deducted?

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1 Best answer
Expert Alumni
Mar 27, 2024 6:12:58 AM

Yes, that's correct. The number on that line is the amount of your state and local taxes that exceed the limit. 

 

Ever since the Tax Cuts and Jobs Act of 2017, your deduction for state and local taxes (SALT) is limited to $10,000, no matter how much was actually paid. 

 

The SALT limitation applies to the total amount of your:

  • State and local sales tax, or state and local income tax.
  • Property taxes, also known as real estate taxes
  • State and local personal property taxes, including registration fees
     

1 Replies
Expert Alumni
Mar 27, 2024 6:12:58 AM

Yes, that's correct. The number on that line is the amount of your state and local taxes that exceed the limit. 

 

Ever since the Tax Cuts and Jobs Act of 2017, your deduction for state and local taxes (SALT) is limited to $10,000, no matter how much was actually paid. 

 

The SALT limitation applies to the total amount of your:

  • State and local sales tax, or state and local income tax.
  • Property taxes, also known as real estate taxes
  • State and local personal property taxes, including registration fees