Can I deduct state and local income, sales taxes after TCJA?
You can deduct maximum $ 10,000 ($5,000 if married filing separately) paid by you as state and local income, sales and property taxes. Tax Cuts & Jobs Act has modified the law of deduction. You need to take note of the following 3 important points :
- Total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately).
- This maximum amount you can claim if filing Schedule A to your tax return.
- You can’t claim both- income taxes or sales taxes paid to state or local authorities.
Prashant Thakur Changed status to publish February 13, 2020