Why didn't my mortgage or property taxes increase my refund?

by TurboTax •   976
Updated April 27, 2026 2:26 PM

If your refund doesn't change after you've entered your medical expenses, charitable contributions, mortgage interest, sales taxes, or your state, local, or property taxes, it's probably because your Standard Deduction is currently higher than your itemized deductions. TurboTax will suggest  the deduction that gives you the bigger tax break.

Some people confuse a deduction with a dollar-for-dollar credit, but that's not how deductions work. If you donate $300 to charity, your taxable income is reduced by $300, assuming you're itemizing. You'll never see a $300 donation translate to a $300 increase in your refund.

Note: If your mortgage or property taxes didn’t increase your refund, it’s because the Standard Deduction was higher than your home expenses. The IRS automatically gives you the larger "discount" to ensure you get the biggest refund possible. To benefit from mortgage or tax expenses specifically, they’d need to amount to more than the automatic Standard Deduction amount.

Lastly (this is uncommon) it could be that you're getting hit with the AMT this year, and that means you can't take a deduction for property (real estate) taxes, period.

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