topic property taxes increasing state refund in Get your taxes done using TurboTax

property taxes increasing state refund

user17706935529 — Tue, 10 Feb 2026 03:23:37 GMT

So, TurboTax is increasing my State refund by nearly $300 after I enter my property taxes. I tried three other tax programs to see if the same thing would happen, and it didn't. All three platforms are giving me a lower refund. I've tried deleting and adding the number to TurboTax a bunch of times and the refund amount goes up and down every time I enter my property taxes. If I remove the property taxes, it gives me the same number as the other programs. I'm taking the standard deduction in all cases. I'm in Michigan. Can anyone explain this to me?

Re: property taxes increasing state refund

Mike9241 — Tue, 10 Feb 2026 05:36:21 GMT

Don't know what state you are inquiring about, but consider a state like Illinois that gives a credit for the amounts paid in 2025 for the 2024 real estate taxes paid on your Illinois primary residence. Example: Illinois Income taxes before this credit - assume $600. Paid in $800 through withholding. At this point, your refund is $200. You paid $1000 of these real estate taxes. The credit is 5% or $50. Your refund now increases to $250.

If you let us know the state, we may be able to provide further guidance. TurboTax may require certain entries, while a different app may require different entries

Re: property taxes increasing state refund

user17706935529 — Tue, 10 Feb 2026 16:04:18 GMT

I'm in Michigan. My withholding is a higher number on Turbotax. I just don't understand why this is only happening on Turbotax and not the other programs. I deleted the Turbox taxes and completely ridid them in case it was my error and the same thing happened when I entered my property taxes.

Re: property taxes increasing state refund

DianeW777 — Mon, 16 Feb 2026 20:00:14 GMT

The Michigan (MI) Homestead Property Tax Credit is the only item I can think of that may be something to consider.

MI Homestead Property Tax Credit

If you believe this does not apply and you would like us to take a review please use the information below and we will help.

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions: (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

Click on Online in the top left menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'* > Follow the prompts to reach the token number.
- Enter your email used for TurboTax > Enter your code > Send
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return. This is necessary for us to view the return.
- *If using a MAC, go to the menu at the top of the screen, select Help, then, 'Send Tax File to Agent')

We will be able to see exactly what you are seeing and we can determine what exactly is going on in your return to provide you with a resolution.

@user17706935529