Don't want to claim state income tax

Forum|Forum|6 years ago
December 7, 2019
1 reply
5 views

Hello All. I don't know if this is even allowable, but here goes. Client pays $15,000 in real estate (property) tax. Thus, already capped out for the $10,000 limit for federal state and local taxes. They are not subject to NIIT. I would like to claim $0 of their state income tax withholding on Schedule A for state income tax. This should reduce the taxability of their state tax refund on next year's return, correct? This is my thinking. Any thoughts, suggestions to override the state income tax deduction? I can't find one. Thanks!

Lacerte Tax

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Best answer by George4Tacks

Screen 25 > Taxes > Put a 2 in the first box. This will check the box on 5a (If there is sales tax). If you do not have a sales tax, scroll down a bit and put a 1 in for Actual Taxes Paid (Let's assume you crossed the border and paid some tax in a neighboring state (or make up your own story))

https://accountants-community.intuit.com/articles/1608009-state-and-local-sales-tax-deduction

George4TacksAnswer

Level 15

Screen 25 > Taxes > Put a 2 in the first box. This will check the box on 5a (If there is sales tax). If you do not have a sales tax, scroll down a bit and put a 1 in for Actual Taxes Paid (Let's assume you crossed the border and paid some tax in a neighboring state (or make up your own story))

https://accountants-community.intuit.com/articles/1608009-state-and-local-sales-tax-deduction

Answers are easy. Questions are hard!

J

jskcpaAuthor

Level 3

George, that works!! Thanks very much!!

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