State and Local Tax Deduction
If Form 1040 or 1040-SR, line 11b is equal to or less than $500,000 ($250,000 if married filing separately), and you didn’t complete Form 2555 or Form 4563, or you didn’t exclude income from Puerto Rico, enter the smaller of line 5d or $40,000 ($20,000 if married filing separately). If Form 1040 or 1040-SR, line 11b is more than $500,000 ($250,000 if married filing separately), or if you completed Form 2555, Form 4563, or excluded income from Puerto Rico, complete the State and Local Tax Deduction Worksheet to figure the amount to enter on line 5e.
State and Local Tax Deduction Worksheet
Tax Tables If the amount on Schedule A, line 5d is $10,000 ($5,000 if married filing separately) or less, enter the amount from Schedule A, line 5d on Schedule A, line 5e. You don’t have to complete this worksheet.
1. Is the amount on Schedule A, line 5d more than $10,000 ($5,000 if married filing separately)? No. Your deduction isn't limited. Enter the amount from Schedule A, line 5d on Schedule A, line 5e. Don't complete the rest of this worksheet. Yes. Enter $40,000 1. _____ 2. Enter the amount from Form 1040 or 1040-SR, line 11b 2. _____ 3a. Enter any income from Puerto Rico that you excluded 3a. _____ b. Enter the amount from Form 2555, line 45 3b. _____ c. Enter the amount from Form 2555, line 50 3c. _____ d. Enter the amount from Form 4563, line 15 3d. _____ e. Add lines 3a through 3d 3e. _____ 4. Add lines 2 and 3e 4. _____ 5. Enter $500,000 ($250,000 if married filing separately) 5. _____ 6. Is the amount on line 4 more than the amount on line 5? No. Skip lines 7 and 8 and enter the amount from line 1 on line 9. Yes. Subtract line 5 from line 4 6. _____ 7. Multiply line 6 by 30% (0.30) 7. _____ 8. Subtract line 7 from line 1 8. _____ 9. Enter the larger of the amount on line 8 or $10,000 9. _____ 10. State and local tax deduction. Enter the smaller of the amount on line 9 (half the amount on line 9 if married filing separately) or the amount from Schedule A, line 5d here and on Schedule A, line 5e 10. _____