How come Turbo Tax isn't reducing my tax due amount when i enter my property tax? Stumped on what is triggering this. I'm not aware of other SALT deductions i'm getting

Forum|Forum|4 years ago
February 23, 2022
6 replies
57 views

is this a software problem or am i missing something else that is making my property tax deduction nullified?

TurboTax Premier Online

MinhT1

Alumni - Intuit

The most probable reason would that your standard deduction is currently higher than your itemized deductions. If and when you enter other itemized deductions such as mortgage interest or donations which make the total itemized deductions higher than your standard deduction, you would see a decrease in tax due (or an increase in your refund.

Please read this TurboTax Help topic for more information.

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jecurtis100Author

Level 2

hi MinhT1,

Thank you for your comments/ thoughts on my question.

I am currently set as using the itemized deductions and as I went through the process, i entered in my property tax before I entered in my itemized deductions. I noticed right from the beginning that I wasn't receiving credit for my property tax.

Now that i have entered in all of my data, have wrapped it all up for both federal and state, i went back and deleted the property tax deduction and my amount owed to the federal govt didn't move by a single dollar. When I added it back in, no movement either.

I cant help but think there is a SALT tax issue going on but i've read enough on irs.gov and the FAQs here on Turbo Tax to understand that i should be getting some level of incentive/ deduction for my property tax paid. Perhaps a software problem with Turbo Tax or is there a tax guideline i'm not understanding correctly?

MinhT1

Alumni - Intuit

The SALT (state and local taxes) is limited to $10,000 ($5,000 if Married filing separately).

Are you sure that after entering all your itemized deductions including property tax, yor itemized deductions are greater than than your standard deduction?

Your observations lead me to think that your total itemized deductions (including property tax) are lower than your standard deduction. This is why adding or leaving out property tax has no effect on your tax due.

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