What this line means
The total of line 5e (SALT deduction after the $40,000 cap) and line 6 (other taxes). This is the total amount of deductible taxes that flows into your total itemized deductions on line 17. Note that foreign taxes on line 6 are not subject to the SALT cap — the cap applies only to state and local taxes on lines 5a through 5c.
Does this apply to you?
- Everyone completing the taxes section of Schedule A calculates this total
- This is a simple addition: line 5e + line 6
Easy to overlook
Foreign taxes sit outside the SALT cap The $40,000 SALT cap applies only to domestic state and local taxes. Foreign income taxes deducted on line 6 are added on top of the capped amount. If your SALT is capped at $40,000 and you paid $2,000 in foreign taxes, your total on line 7 is $42,000. 1 IRS Schedule A instructions — Line 7
Federal taxes are never deductible here Federal income tax, Social Security tax, and Medicare tax are not deductible on Schedule A. Only state, local, and foreign taxes qualify. This catches filers who see large federal withholding on their W-2 and try to include it as an itemized deduction. 2 General filing pattern — taxes paid section total
Watch out for this
Including federal income tax withholding or self-employment tax in the taxes paid section. Schedule A covers state, local, and foreign taxes only. Federal taxes reduce your refund or increase your balance due on Form 1040, but they are never deductible against your income.
Footnotes
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IRS Schedule A (Form 1040) Instructions, Line 7. https://www.irs.gov/instructions/i1040sca ↩
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IRS Schedule A (Form 1040) Instructions. See also IRS Publication 17, Your Federal Income Tax. https://www.irs.gov/pub/irs-pdf/p17.pdf ↩