Taxes You Paid Menu
For tax to be deductible, it must have been paid in the current year and was one that got forced on the taxpayer. To determine your current year’s state and local general sales tax, make use of the relevant tables. Tax deduction may only be claimed on Schedule A, Form 1040 as itemized deductions.
New for 2018 - The current state and local taxes paid limitation is $10,000 ($5,000 if married but filing differently), where state and local taxes include the general sales tax, state income tax, real estate tax and personal property tax.
State & Local Tax from W-2s, 1099s, Estimates - This amount will be pulled by the program from withholdings that were reported on Form W-2, Form W-2G, Form 1099-G, Form 1099-R, Form 1099-MISC, and State Estimated Payments.
Additional State & Local Income Tax - enter the amount of the state and local income taxes paid for a previous year, for instance, taxes paid using your previous year state or local income tax return. Penalties or interests are not to be included.
Prior Year State Amount Due - in case an amount that was due from the previous year tax return and in the event that the previous year return was done in the program, an amount will flow into this field. No adjustment will be necessary if this amount was submitted together with the return. An amount may also be entered in this field so as to mirror any amount that had actually been paid with the previous year return.
Prior Year 4th Qtr Estimates paid after 12/13 - the program automatically pulss the amount of the state estimated payments entered in the previous year program paid post 12/31. The amount in this field may be adjusted. Alternatively, you may enter the amount here if you never entered the amount in the previous year program.
Total State & Local Income Tax - the totl state & local income tax for the above entries is calculated by the program.
Real Estate Taxes - The taxpayer must be the owner of the real estate and the taxes they pay be dependednt on the assessed value of the property for the real estate taxes to be deducted as itemized deductions. In the event that taxes are paid from an escrow account by the mortgage company, deduct the taxes that were actually paid for the taxpayer imstead of the amount paid into the escrow by the taxpayer. Real estate tax, unlike mortage interest, is not limited to the taxpayer’s first two homes.
New for 2018 - Foreign taxes paid on real estate are no longer deductible.
Real Estate Taxes Carried from Form 8829/BUOH - Unused parts of some expenses can be utilized as an itemized deduction.
Personal Property Taxes - The Personal Property taxes are only deductable in the event that they are based only on value and are charged on a yearly basis.
Other Taxes - Enter the amount of any other deductible taxes paid by taxpayer through the year. Other deductible taxes are inclusive of taxes that were remited to a foreign country (in case foreign tax credit was never claimed), and generation skipping tax forced on some income distributions.
Total Taxes You Paid - The total of all the entries above will be calculated by the program.
Additional Information:
Tax Topic 503 - Deductible Taxes