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Can I deduct state or local income tax on my federal return?

SOLVEDby TurboTax1426Updated February 08, 2024

You might be able to get a federal deduction for state or local income taxes you paid in 2023, even if they were for an earlier tax year.

To get this deduction, you'll need to itemize. There's a cap on the SALT deduction (state and local tax) which may limit the amount you can deduct.

Nevertheless, you should enter these payments and we'll figure out if they're deductible or not:

  1. With your tax return open, search inside your program for taxes paid.
  2. Select the Jump to link at the top of your search results. This takes you to the Estimates and Other Income Taxes Paid screen.
  3. On this screen, select Start or Update next to the appropriate topic under the heading that applies to your situation:
    • Estimated Tax Payments to enter 2022 or 2023 state/local estimated payments
    • Payments With Extension to enter 2022 or 2023 state/local payments you made with your state or local extension
    • 2022 Refund Applied to 2023 if you applied any portion of last year's state/local refund to this year's state or local return
    • Other Income Taxes Paid in 2023 if you paid 2022 or earlier state/local taxes

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