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

You might be able to get a federal deduction for state or local income taxes you paid in 2024, 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. Open or continue your return.
2. Navigate to the taxes paid section:
   • TurboTax Online/Mobile: Go to taxes paid.
   • TurboTax Desktop: Search for taxes paid and select the Jump to link.
3. On the Estimates and Other Income Taxes Paid screen, select Start or Update next to the appropriate topic under the heading that applies to your situation:
   • Estimated Tax Payments to enter 2023 or 2024 state/local estimated payments
   • Payments With Extension to enter 2023 or 2024 state/local payments you made with your state or local extension
   • 2023 Refund Applied to 2024 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 2024 if you paid 2023 or earlier state/local taxes