Where to enter state taxes for the Schedule A, line 5 in ProConnect Tax

ProConnect Tax will automatically populate the Schedule A, line 5, with state and local tax withholding entered on income screens and state estimates entered as paid.

The program will also calculate the allowable sales tax deduction based on the client's state of residency.

Starting in Tax Year 2025

The overall limit on the deduction for state and local income, sales and property taxes has increased to $40,000 ($20,000 if MFS) and is reduced by your modified adjusted gross income if more then $500,000 ($250,000 if MFS) but will not reduce below $10,000 ($5,000 if MFS). Review the Schedule A line 5e to see the results.

To enter additional state or local taxes:

1. From the Input Return tab, go to Deductions ⮕ Itemized Deductions (Sch A).
2. Select the Taxes tab.
3. Enter the tax amounts in the applicable fields.

Items automatically included for Schedule A, line 5:

• State and local income tax withholding from a W-2, 1099-R, Partnership K-1, S-Corp K-1, 1099-INT, 1099-DIV, dispositions, 1099-G, and 1099-MISC
• State and local refunds applied and estimates entered as paid on the Payments, Penalties & Extensions, 2025 Estimated Payments screen
• Sales taxes calculated per the optional tables (based on the resident state selected on the General, Client Information screen)

How to see how much State and Local Sales Taxes are allowed on tax year 2025 return?

1. Go to the Check Return tab.
2. Select Forms, then US.
3. Select the Sch A.
4. Line 5e will show the amount after applying the income limitations and phaseout rules.
5. To see the Worksheet for line 5a select Worksheets and scroll to the State and Local Taxes (Schedule A, Line 5a) worksheet.

To get overrides for local tax rate:

1. From the Input Return  ⮕ Deductions ⮕ Itemized Deductions (Sch A).
2. Select the Taxes tab.
3. Scroll to the Optional Tables section.
4. Make an entry in Local rate (for computing local taxes) (.xxxxxx) [Override] under Location on 12/31/20YY
5. Make an entry in Local rate (for computing local taxes) (.xxxxxx) under Prior Location if applicable