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  • Dec 18, 2020, 07:21 AM
    2020 State tax deduction - paying $80,000 in MN taxes

    Due to some big gains in stock market, my MN state tax for 2020 is around $80,000. I can only deduct $10,000 of those taxes on my Federal return due to the SALT cap. Is there a work around or something to deduct the full $80,000 on my federal return?

  • Dec 18, 2020, 07:25 AM
    Sorry, but there is NO work-around. Several states tried to implement laws and procedures to work past the SALT limitations, but they were all shot down by the IRS.

    Note that if you do not make payment until 2021, then the deduction moves to the 2021 tax return. It is possible that Congress will change the current tax laws and remove the SALT limitations.

    Other than that possible law change, you are stuck the limitation.
  • Dec 18, 2020, 07:51 AM
    I only made 40K in MN tax payments this year. I'll take your suggestion and make the rest of the estimated payment next year by 1/15/21. Thanks a lot for getting back so quickly.

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