"Here are your 2020 and 2021 Deductions and Credits" screen question

Forum|Forum|4 years ago
April 13, 2022
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Question about the screen near the end of the journey - "Here are your 2020 and 2021 Deductions and Credits" screen" - specifically, how is the "state and local income or sales taxes" line populated?

I'm seeing a major change from 2020 to 2021 and I wanted to see how that figure was populated so I could check those entries. Many thanks!

DMarkM1

If you elected to use sales taxes paid vs state/local income taxes the number will come from a table based on the sales tax rate for your state/locale and your income plus any entries for sales taxes paid on major purchases (car, boat, appliances, etc).

Sales taxes are normally used by taxpayers in states that do not have a state income tax. Otherwise the income tax deduction is normally the better option.

If you did not elect to use sales taxes then the state/local income taxes amount comes from state/local withholding on forms W2 and/or 1099 plus any state/local estimated taxes paid and entered in the "Deductions & Credits" tab, the "Estimate and other taxes paid" section.

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