What goes into line 5 for 1040 Schedule A ?

Discussion in 'US Taxes' started by sudha, Mar 30, 2008.

  1. sudha

    sudha Guest

    Hi,

    I am trying to do my taxes using TurboTax deluxe this year (Tax year
    2007) as I did last year.

    I always find that the "State and Local taxes paid' which goes into
    line 5 of
    schedule A is higher than the amount(s) from box 17 of my W-2. I am
    unable to
    figure out what exactly makes up the difference. I always owed taxes
    to both
    Fed and State for the last several years and never had a refund.

    I looked at the returns prior to 2006, when I relied on my accountant
    to work it out
    for me, to see if there is a difference. I do see that line 5 has
    always been higher than
    box 17 of W-2. I do not pay local income tax - so nothing is box 19 of
    W-2.

    Could anyone help me spot the difference ?

    Any help appreciated.

    SR
     
    sudha, Mar 30, 2008
    #1
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  2. sudha

    Guest

    On Mar 30, 2:12 pm, sudha <> wrote:
    > Hi,
    >
    > I am trying to do my taxes using TurboTax deluxe this year (Tax year
    > 2007) as I did last year.
    >
    > I always find that the "State and Local taxes paid' which goes into
    > line 5 of
    > schedule A is higher than the amount(s) from box 17 of my W-2. I am
    > unable to
    > figure out what exactly makes up the difference. I always owed taxes
    > to both
    > Fed and State for the last several years and never had a refund.
    >
    > I looked at the returns prior to 2006, when I relied on my accountant
    > to work it out
    > for me, to see if there is a difference. I do see that line 5 has
    > always been higher than
    > box 17 of W-2. I do not pay local income tax - so nothing is box 19 of
    > W-2.
    >
    > Could anyone help me spot the difference ?
    >
    > Any help appreciated.
    >
    > SR


    Hi SR,

    An accountant I've used in the past told me to add up the following
    for Schedule A, line 5:
    1) State income tax (box 17 of W-2)
    2) State Tax you paid for the previous year's state tax return (if you
    received money back on your previous year's state tax return, then
    this would be zero)
    3) State Disability Insurance paid (SDI - box 14 of W-2)

    I'm trying to determine if I can also include an estimation of state
    sales tax that I've paid in 2007. I found a calculator for
    determining this on the irs.gov website called "Sales Tax Deduction
    Calculator."

    Hope this information gets to you in time!

    B
     
    , Apr 15, 2008
    #2
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  3. sudha

    Guest

    On Apr 15, 12:47 pm, wrote:
    > On Mar 30, 2:12 pm, sudha <> wrote:
    >
    >
    >
    >
    >
    > > Hi,

    >
    > > I am trying to do my taxes using TurboTax deluxe this year (Tax year
    > > 2007) as I did last year.

    >
    > > I always find that the "State and Local taxes paid' which goes into
    > > line 5 of
    > > schedule A is higher than the amount(s) from box 17 of my W-2. I am
    > > unable to
    > > figure out what exactly makes up the difference. I always owed taxes
    > > to both
    > > Fed and State for the last several years and never had a refund.

    >
    > > I looked at the returns prior to 2006, when I relied on my accountant
    > > to work it out
    > > for me, to see if there is a difference. I do see that line 5 has
    > > always been higher than
    > > box 17 of W-2. I do not pay local income tax - so nothing is box 19 of
    > > W-2.

    >
    > > Could anyone help me spot the difference ?

    >
    > > Any help appreciated.

    >
    > > SR

    >
    > Hi SR,
    >
    > An accountant I've used in the past told me to add up the following
    > for Schedule A, line 5:
    > 1) State income tax (box 17 of W-2)
    > 2) State Tax you paid for the previous year's state tax return (if you
    > received money back on your previous year's state tax return, then
    > this would be zero)
    > 3) State Disability Insurance paid (SDI - box 14 of W-2)
    >
    > I'm trying to determine if I can also include an estimation of state
    > sales tax that I've paid in 2007. I found a calculator for
    > determining this on the irs.gov website called "Sales Tax Deduction
    > Calculator."
    >
    > Hope this information gets to you in time!
    >
    > B- Hide quoted text -
    >
    > - Show quoted text -


    I found out you cannot deduct BOTH state income AND sales tax...you
    are only allowed to deduct one or the other.

    (from irs.gov)
    "If you file a Form 1040, and itemize deductions on Schedule A, you
    have the option of claiming either state and local income taxes OR
    state and local sales taxes. (You can't claim both.) If you saved your
    receipts throughout the year, you can add up the total amount of sales
    taxes you actually paid and claim that amount."
     
    , Apr 15, 2008
    #3
  4. sudha

    D. Stussy Guest

    <> wrote in message
    news:...
    > On Apr 15, 12:47 pm, wrote:
    > > On Mar 30, 2:12 pm, sudha <> wrote:
    > > > I always find that the "State and Local taxes paid' which goes into
    > > > line 5 of schedule A is higher than the amount(s) from box 17 of
    > > > my W-2. I am unable to figure out ...

    > >
    > > An accountant I've used in the past told me to add up the following
    > > for Schedule A, line 5:
    > > 1) State income tax (box 17 of W-2)
    > > 2) State Tax you paid for the previous year's state tax return (if you
    > > received money back on your previous year's state tax return, then
    > > this would be zero)
    > > 3) State Disability Insurance paid (SDI - box 14 of W-2)
    > >
    > > I'm trying to determine if I can also include an estimation of state
    > > sales tax that I've paid in 2007. I found a calculator for
    > > determining this on the irs.gov website called "Sales Tax Deduction
    > > Calculator."
    > >
    > > Hope this information gets to you in time!
    > >
    > > B- Hide quoted text -
    > >
    > > - Show quoted text -

    >
    > I found out you cannot deduct BOTH state income AND sales tax...you
    > are only allowed to deduct one or the other.


    True (after 1986), but one usually deducts the HIGHER of the two amounts.
     
    D. Stussy, Apr 15, 2008
    #4
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