Where is TT getting the "Refigured state income tax deduction"

[roninshawneeKS]

On the State and Local Income Tax Refund WORKSHEET

Line 7a Allowable itemized deductions, from 2020 Schedule A, line 17  . . . . . 16,000

Line 7b Allowable itemized deductions, refigured by excluding recovery amount:

               (1)  Refigured state and local tax deduction (Schedule A, line 5a):

                      (a)  Refigured state income tax deduction . . . . . 4,500

                      (b)  Sales Tax deduction                                 . . . .  blank

                      (c)   Refigured deduction (Larger of (a) or (b) . . . 4,500

               (2)  Refigured total itemized deductions           . . . . . 14,000

               (3)  Refigured allowable itemized deductions from line 7b(2)  . . . 14,000

(numbers rounded to 100's))

What is going on here - where is TT getting all of these numbers.  Line 7a is correct (from 2020 Schedule A), but the rest of the numbers on 7b(1) & 7b(2) don't match anything (i.e. the Schedule A, line 5a doesn't match that line on either 2020 or 2021 Schedule A).

AND YES, TRUE, the lines say "Refigured", but where, how.  Going to the Forms mode and clicking on these numbers, I don't get any source information to tell me what is going on.

The only funny thing is that the 4,500 does match exactly my 2020 State Tax Owed, but other than that, I have no idea or clue where these numbers are coming from.

ron in shawnee

[Cynthiad66]

Itemizing on Schedule A Form 1040Sounds like you are using TurboTax CD version and the source of calculated fields should be provided.

To identify the source of calculated fields you must follow these steps.  When you are in Forms mode, right click on the number in question and then select QuickZoom. This will take you to the form where the number is calculated. Or, you may be able to select Data Source if the number was input instead of calculated on a different for

When searching for ways to reduce your taxable income, itemizing your deductions can really maximize your tax savings. The benefit of itemizing is that it allows you to claim a larger deduction that the standard deduction. However, it requires you to complete and file a Schedule A with your tax return and to maintain records of all your expenses.

For your State itemized deduction, they normally transfer from the Federal form 1040.

In order to claim itemized deductions, you must file your income taxes using Form 1040 and list your itemized deductions on Schedule A:

1. Enter your expenses on the appropriate lines of Schedule A.
2. Add them up.
3. Copy the total amount to the second page of your Form 1040.
4. This amount is then subtracted from your income to arrive at the final taxable income number.

[roninshawneeKS]

Cynthia-

Thanks for the response.  The problem is that none of that stuff works on the State Tax Refund Worksheet (QuickZoom or Data Source - both are inactive) - I had tried these before and this was what I was complaining about, about not working.

However, I was able to click on "About Line 7b(1)(a) - and I guess this is their attempt to explain how these lines were calculated.  In particular, from the pop-up:

"Line 7 - Recovery Exclusion from Standard Deduction, Sales Tax Deduction, and SALT limitation
State income tax deductions which were less than the sales tax deduction, subject to the SALT limitation (10,000 or 5,000), or itemized deductions which were less than the standard deduction did not reduce tax and are eligible for the recovery exclusion. The computations on lines 7a through 7f refigure the allowable itemized deductions to determine if any part of the state income tax deduction was less than the sales tax deduction, not allowed due to the SALT limitation, or less than the standard deduction."

I guess the above is what you are supposed to use to get the various Line 7 values, but I really don't understand it, and can't make it work.

OK, if I accept that the value on Line 7b(1)(a) of my 2020 State Sales Tax owed is correct (although I don't know why they say "Refigured") - I still have no idea where the value on Line 7b(2) comes from.  I have added, subtracted and done all sort of math gyrations from my 2020 Schedule A and State Tax Forms - and I have yet been able to come up with the 7b(2) value.  The rest of the lines are straight forward, just additions of this questionable  7b(2) figure.

So do you have any idea what figures (Schedules, Lines, etc.) I should be using to come up with the value on Line 7b(2).

ron in shawnee

[MarilynG1]

The 'About Line 7b(2)' states: (Data Source not available, since it is a calculated field)

"Line 7 - Recovery Exclusion from Standard Deduction, Sales Tax Deduction, and SALT limitation

State income tax deductions which were less than the sales tax deduction, subject to the SALT limitation (10,000 or 5,000), or itemized deductions which were less than the standard deduction did not reduce tax and are eligible for the recovery exclusion. The computations on lines 7a through 7f refigure the allowable itemized deductions to determine if any part of the state income tax deduction was less than the sales tax deduction, not allowed due to the SALT limitation, or less than the standard deduction."

Since we can't see your tax return in this forum (nor last year's), it's difficult to advise what amounts are being used in the calculation. 

Since you are having issues with Zoom and Data Source in your program, you may want to uninstall/reinstall (on a different computer, maybe?) so these features are working for you.

Click this link for more info on State and Local Sales Tax Deduction.