I agree with the original note: TT explanations are unclear, and we should not have to override something as straightforward as property taxes paid. I think long and hard about overriding a TT calculation if for no other reason than it shifts the responsibility about the calculation being correct from TT to me.
So, to summarize:
-I file as a NJ resident MFS
-I entered on Federal, for 2019 and this year 2021 (and 2020), the full amount of my property taxes paid by me and my spouse. The actual calculations for me were "correct" insofar as I hit the SALT limit with my GIT and 1/2 of PP tax, and that was the limit displayed.
- Was the federal right? The tax calculated was so far as the deduction is concerned. Did TT Federal multiply my PP tax paid by 1/2? I can't tell.
-When getting to NJ, the PP tax deduction was halved, as it should be. (There's no ownership of the property with anyone other than my spouse.) So TT halves the property tax paid at the NJ level. Does TT not halve the deduction at the Federal level? Again, unknown. But with no override, the Federal calculates properly and NJ is handled correctly if I enter the full amount property tax paid on the Federal form.
- Is TT unaware that MFS causes some deductions, like property tax, to be split between spouses? Possible, but that seems very unlikely, especially given that in this instance TT halves the amount entered for NJ.
I think people filing MFS keep very detailed individual records. My spouse and I do. We, like others, have very definite and specific reasons for filing MFS. Some expenses and deductions are easy to separate; medical expenses come to mind. Others cannot be, like property taxes since NJ doesn't recognize that payment as anything but joint from the property owners.
The TT instructions here are unclear. Other spots in TT also cause hiccups (e.g., correctly completing Form 1116 has been bizarre for years). But TT Federal does ask for the full amount of PP tax paid, the resultant calculations appear correct even though the mechanics are "shrouded", and TT NJ displays and handles the payment correctly. I'm also unsure where PP tax would elsewhere appear (AMT, maybe?), so I can't see where else it matters since it nowhere else affects me.
Net: I put the full amount of property tax paid in Federal and do not (need to) override NJ. It works for me, and it has for a while now. FWIW
