Hahn1040 Posted February 3, 2020 Report Share Posted February 3, 2020 On the 2019 Virginia Schedule A, line 18 subtracts state and local income tax AND it subtracts sales tax. In the past, if you used Sales Tax on federal, Virginia did not make the adjustment. Now it does. I called Virginia tax to ask about it. I was hoping that the software was incorrect. On the positive side, if the Real Estate and personal property taxes are greater than $10,000, they allow the entire amount. BUT NO SALES tax anymore. ALSO for medical they are back to the 10% subtraction. ... well, at least they started the year with that threshold compared to 2017 when they changed from 7.5% to 10% after filing had begun. Quote Link to comment Share on other sites More sharing options...
Possi Posted February 3, 2020 Report Share Posted February 3, 2020 This is new, so thanks for pointing it out! Taxes You Paid. For Virginia purposes, your deduction is generally not subject to the $10,000 federal limitation for taxable year 2019 and thereafter. However, if you are claiming a deduction for general sales taxes instead of income taxes, fill in the oval and enter on Line 5a the smaller of the state and local sales taxes paid by you during the taxable year or $10,000 (or $5,000 if married filing separately). • Total Itemized Deductions. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted February 5, 2020 Report Share Posted February 5, 2020 Hey Virginia guys. Did you notice that the extra refund received in October is included in the 1099 if TP gets a 1099 from the state. Where I seem to have a problem is a calculation when the Federal A was forced and the cap is sitting there. Most of time no brainer but I have a few that used sales tax because of it(the cap) in order not to report taxable refunds this year. Maybe I am overthinking this thing. I took Possi's response and tried it on a dummy return. Yup crazy as it sounds that's the way it worked out. Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 7, 2020 Author Report Share Posted February 7, 2020 Good Grief! ATX just revised the form so that NOW it is NOT subtracting sales tax on line 18. I had called VA tax to ask this and was told that the software was correct in subtracting sales tax as well as state income tax. ... so what is correct?? guess I'll call VA tax again. UGH! Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted February 7, 2020 Report Share Posted February 7, 2020 From a couple of returns played with you don't get either one. Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 8, 2020 Author Report Share Posted February 8, 2020 I just checked TaxWise and it is still subtracting Sales tax on line 18 While ATX, with the version updated today, no longer subtracts it. I am going to put any returns with this issue aside until I have a clear answer. Like I said above, I called Virginia Tax on Monday and was told that sales tax must be subtracted on line 18. So either the person I spoke with did not understand my question, did not find the correct answer OR ATX has changed it incorrectly. Quote Link to comment Share on other sites More sharing options...
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