topic Re: Property taxes did not decrease my tax rate in Deductions & credits

Property taxes did not decrease my tax rate

Katie99 — Wed, 16 Apr 2025 00:30:24 GMT

When I entered my property taxes of less than ten thousand dollars, it did not decrease my tax rate like it has in previous years. Does anyone know what is going on? It is decreasing it for medical expenses though.

Re: Property taxes did not decrease my tax rate

ThomasM125 — Wed, 16 Apr 2025 00:34:38 GMT

The maximum allowed state tax deduction is $10,000, but that includes your state income or sales taxes. So it is possible you have already maxed out your $10,000 deduction before you enter the property taxes.

Re: Property taxes did not decrease my tax rate

Katie99 — Sat, 19 Apr 2025 00:51:31 GMT

Thank you for your reply Thomas M125. How could I max it out? At that point I had not taken any other deductions and I have only one property. The taxes were under 10K. I didn't feel very confident with the issue as last year TT determined my late fee penalty to be twice what it should have been but the IRS caught it and issued a refund. I suspect the same will happen this year. But the property tax issue really confounds me.

Re: Property taxes did not decrease my tax rate

VolvoGirl — Sat, 19 Apr 2025 00:54:10 GMT

There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. Which includes property tax, any state tax paid like for last year’s state return, state estimated payments and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

Re: Property taxes did not decrease my tax rate

Katie99 — Sat, 19 Apr 2025 02:35:56 GMT

Thank you for your reply VolvoGirl. I do understand what you stated. The problem is, I was nowhere near that when I entered my property taxes. My property taxes (less than 9K) were the first deduction I entered. I saw no decrease in taxes at this point.

Re: Property taxes did not decrease my tax rate

VolvoGirl — Sat, 19 Apr 2025 02:39:31 GMT

You won’t see a change until all your deductions are more than the Standard Deduction. Turbo Tax starts off by giving you the Standard Deduction.

For 2024 the standard deduction amounts are:

Single 14,600+1,950 for 65 and over or blind

HOH 21,900 + 1,950 for 65 and over or blind

Joint 29,200 + 1,550 for each 65 and over or blind (both 32,300)

Married filing Separate 14,600 + 1,550 for 65 and over or blind