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March 26, 2022
Question

Deduction for Itemized state and local taxes

  • March 26, 2022
  • 1 reply
  • 0 views

Hello,

Where can I see what is maxing out the federal 10K deduction for itemized state and local taxes?

    1 reply

    VolvoGirl
    Employee
    March 26, 2022

    There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  SALT is State And Local Tax.  Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

     

    State and local taxes paid are:

    -any state withholding from your paychecks, retirement checks, unemployment checks, etc.

    -a state tax due (for any year) you paid last year

    -any state estimated tax payments you made during year including an overpayment applied from last year

    -any local taxes withheld on your checks like SDI in box 14 or 19 on your W2