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March 27, 2024
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What is the meaning of the numbers in "State and local taxes greater than $10000" line?

  • March 27, 2024
  • 1 reply
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I am in MA. What does that line mean? I do have a registration fee of $60. But the above shows 0. Does that mean my deduction is too much (greater than $10000), so the registration fee cannot be deducted?

    Best answer by JulieS

    Yes, that's correct. The number on that line is the amount of your state and local taxes that exceed the limit. 

     

    Ever since the Tax Cuts and Jobs Act of 2017, your deduction for state and local taxes (SALT) is limited to $10,000, no matter how much was actually paid. 

     

    The SALT limitation applies to the total amount of your:

    • State and local sales tax, or state and local income tax.
    • Property taxes, also known as real estate taxes
    • State and local personal property taxes, including registration fees
       

    1 reply

    JulieSAnswer
    March 27, 2024

    Yes, that's correct. The number on that line is the amount of your state and local taxes that exceed the limit. 

     

    Ever since the Tax Cuts and Jobs Act of 2017, your deduction for state and local taxes (SALT) is limited to $10,000, no matter how much was actually paid. 

     

    The SALT limitation applies to the total amount of your:

    • State and local sales tax, or state and local income tax.
    • Property taxes, also known as real estate taxes
    • State and local personal property taxes, including registration fees
       
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