State and Local Taxes Greater than $10,000

Forum|Forum|3 years ago
April 13, 2023
2 replies
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Hello- under deductions and credits, the line "State and Local taxes greater than $10,000" for the year 2021 it shows "0"; 2022 shows (-$5421). Why? What does this mean?

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ThomasM125

I'm not sure why that number would be negative. You can only deduct up to $10,000 of state and local taxes on your federal return, that is why you see reference to the amount of state taxes over $10,000. Since that amount is negative, it probably means your state and local tax itemized deduction is not limited by the $10,000 threshold.

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dhardison

On my 2024 return, the negative amount shown in the row for State and Local Taxes greater than $10,000 is the amount of tax I paid (sales tax + property tax) that exceeded the $10,000 federal limit.

SteamTrain

Employee

On my Deductions & Credits Summary page.

it shows

...................................................................................2021..............2022.....

(stuff on a bunch of lines)

State and local taxes greater than 10,000 ( $0 ) (-$930)

______________

In my situation, the -$930 represents the $$ amount I paid to the state (or local tax people) that exceeded the SALT limit this year. This value can limit whether a State refund will be taxed next year...but is needed to know only if you itemize deductions (Federal) this year.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*