Why is the value entered into 2023 local tax paid in 2024 always reduced by $275 when it is applied to Schedule OR-A form?

[LindaS5247]

The value entered into TurboTax for 2023 local taxes paid in 2024 may be reduced by $275 when it is applied to Form OR-A because of the SALT Deduction Cap that was put in place by The Tax Cuts and Jobs Act, enacted in December 2017.

This Act has limited the itemized deduction for state and local taxes to $5,000 for a married person filing a separate return and $10,000 for all other tax filers, as explained by the IRS. The limit applies to tax years 2018 to 2025. Previously, there was no limit.

Please come back to TurboTax Community with any additional information or questions you may have and we will be glad to help you.

[troma112]

I am in the all other tax filer category and my total deductions are not at the $10,000 limit.  Additionally, if I increase the value entered into 2023 local tax paid in 2024 it flows through to line 5 of Schedule OR-A by the increased amount but always $275 less than the total amount.

[KeshaH]

I'm unable to recreate this issue, so I'd like to look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states, if any, that are included on the return.

[troma112]

Thank you for looking into this.  To get around this tool issue, I will just increase the amount I enter into the 2023 local taxes paid in 2024 for Portland Metro SHS so the correct values shows on line 5 of for Schedule OR-A.