Question

Is there a federal deduction for extra tax that was paid to state?

Forum|Forum|6 years ago
February 10, 2020
1 reply
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With my 2018 tax return I had to pay an extra $2,391 to the State of Maryland. Can that be deducted from my income for 2019.

D

DavidD66

State (and local) taxes are deductible (subject to limitations) on your federal tax return, but only if you itemized your deductions. The Tax Cuts and Jobs Act of 2017 increased the Standard Deductions. It is now $12,200 if filing Single $24,400 if Married Filing Joint. This means that you total itemized deductions have to be more than those amount in order to get an additional deduction.

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VolvoGirl

Employee

Yes you can enter it and see if you have enough deductions to Itemize. But you only get the benefit of the amount that's over the Standard Deduction.

Now that the Standard Deduction is higher many people will be switching to the Standard Deduction. And there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". And you can only deduct Medical that’s over 7.5% of your AGI.

For 2019 the standard deduction amounts are:

Single 12,200 + 1,650 for 65 and over or blind

HOH 18,350 + 1,650 for 65 and over or blind

Joint 24,400+ 1,300 for each 65 and over or blind

Married filing Separate 12,200 + 1,300 for 65 and over or blind

You can deduct any state taxes paid (for any year) or state estimates actually paid in during the year on your federal return if you Itemize deductions. But just the tax, not anyinterest or penalties. If you transferred from last year it might already be filled in.

Enter it under

Federal on left

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Other Income Taxes - Click the Start or Update button

Next page scroll way down to the last section, Other Income Taxes Paid