How come Turbo Tax has a spot to deduct my state income tax paid and when I look it up state income tax is deductable but when I put it in, Turbo tax is not deducting it
How come Turbo Tax has a spot to deduct my state income tax paid and when I look it up state income tax is deductable but when I put it in, Turbo tax is not deducting it
Any state tax payments you made in 2024 like a 2023 state tax due and 2024 estimates you made can be a itemized deduction on the federal return if you itemize on Schedule A and don't take the Standard Deduction.
But tax payments are limited. For tax years 2018 through 2025, the SALT deduction (which includes sales tax) is capped at $10,000. 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.
Then all your deductions have to be more than the Standard Deduction to be used.
For 2024 the standard deduction amounts are:
Single 14,600 + 1,950 for 65 and over or blind (16,550)
HOH 21,900 + 1,950 for 65 and over or blind (23,850)
Joint 29,200 + 1,550 for each 65 and over or blind (30,750/32,300)
Married filing Separate 14,600 + 1,550 for 65 and over or blind (16,150)