Yes, the question regarding Itemizing your deductions refers to your entire return. In other words, are you claiming the standard deduction or do you have enough other deductions to itemize on Schedule A? TurboTax will tell you which is best for your tax situation when you finish entering your deductions.
Questions regarding "excess" real estate taxes refer to the deduction cap of $10,000 if filing jointly or $5,000 if filing separately.
Property taxes allocated to your Home Office are considered business expenses and do not count towards the real estate taxes cap. Likewise, property taxes allocated to rental properties are rental expenses. The cap applies to property taxes allocated to your personal residence and second home (places where you live) and are included in the calculation for Itemized Deductions.
To report property taxes under the Home Office Deduction, first determine if you are taking the Standard Deduction or Itemizing on Schedule A.
1. If you are claiming the standard deduction, do not report property taxes until you are asked for excess real estate taxes (even if your total is under the cap).
2. If you are itemizing, and your total real estate taxes for your home(s) are under $10,000 (joint) / $5,000 (separate), enter the total amount under the Home Office deduction. TurboTax will allocate the personal portion to itemized deductions for you.
3. If you are itemizing, and your total real estate taxes for your home(s) are over the cap, answer "yes" for "Do you have excess real estate taxes?" and follow the instructions to enter the total amount. TurboTax will perform the necessary calculations to report the business portion under the Home Office Deduction and the personal portion to Schedule A.
You may wish to review the final allocations on Schedule A, Form 8829 (Home Office), and any related worksheets.
Additional information:
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