Sch A line 18 check box does not work

[m-l-pickens]

because of individual taxpayer circumstances, I need to itemize on Sch A so they will transfer to the state return.  The check box on Sch a line 18 does not work.

[garman22 · Accepted solution]

You will find that box to check on the client worksheet....Part X.

[Just-Lisa-Now-]

Officially called the Federal information worksheet   :smile:

[garman22]

Oh yeah.........I always say that one incorrectly. Glad you are on top of things today, Lis...

[m-l-pickens]

Thank you both very much

[garman22]

Anytime!

[IRonMaN]

But, if you are in a state that didn't conform with the federal changes, the amounts on the federal schedule A should still transfer to the state without checking any boxes -------------------------- but maybe I'm missing something in your thought process.

[rbynaker]

I suspect it's a situation where they pay a little more on federal and save a lot more on state.  I'm running into this a good bit on VA returns.

[IRonMaN]

That's kinda funky.

[rbynaker]

Yep.  For VA I really have to look at anything where itemized deductions are in the ~$20K-24K range.  Depends on what federal tax bracket they're in and the ratio of property taxes to SALT cap.

A quick example.  MFJ TP has $10K of RE taxes and $12K of mortgage interest.  Itemizing on federal costs $2K higher TI x let's say 24% = $480.  Itemizing on VA (allowed only if itemizing on federal) saves $22K - $6K (VA SD) = $16K lower TI x 5.75% = $920.

[sjrcpa]

It is an iisue for MD, too.

[rbynaker]

Yeah.  It's worse for you since you have the local income tax rates throwing another variable into the mix.  And you have a lower SD.  So maybe start looking around $17K+ for MD residents?