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MN Property Tax

When entering property tax for our home, the MN tax liability goes up. 

 

This doesn't seem logical, am I entering it incorrectly or shall I just leave it off so the taxes owned MN doesn't go up?

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2 Replies
KarenJ2
Expert Alumni

MN Property Tax

The total of your real estate tax and personal property tax must have been greater than $10,000.

 

MN,  as of 2019 taxes, now allows either itemized deductions or standard deduction.  ON 2019 Schedule M1SA , Itemized Deductions,  2019 Schedule M1SA

 

line 5 is real estate taxes 

 

line 6 is personal property tax.

 

Line 7 is Add lines 5 and 6

 

Line 8 is Enter the lesser of line 7 or $10,000 ($5,000 if married filing separately)  

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MN Property Tax

 

Thanks, KarenJ2.  Your insight led me to solve my situation.  Here it is:

I itemized on the Federal for the best result.  When that pulled into the MN state return it populated schedule M1SA (MN itemized deduction).

In MN you can get partial credit for charitable contributions (Schedule M1M line 20) if the total contributions are greater then $500 and you are taking the standard deduction.

In my case:  Standard Deduction + Schedule M1M was greater than Itemized Deduction (Schedule M1SA).

So, we took Itemized deduction on the Federal and Standard deduction on the state.  TurboTax automatically itemized both, which isn’t the most advantageous result.

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