WI state tax, property tax credit not applying

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Using TT desktop on Mac that is up to date.

I have run into an issue with a 2025 WI state income tax return.  Entering the property tax paid (~$10,000) for "School Property Tax Credit" in the "EasyStep" mode does not seem populate line 16b on the WI state income tax return in the Form 1, and therefore the $300 tax credit is missing.  Looking in the "Forms" mode, the property tax paid does populate in the "Individual Tax Credits Smart Worksheet", but just below that section, the actual Line 16b "Property taxes paid on home in 2025" and "Find credit from table" are blank.  I have tried deleting and reentering the values in the "EasyStep" mode but that does nothing.  

The only way I can get this to work is to override the values in Forms.  Looking back at prior tax returns done through TT are not missing this tax credit.  

Is this a bug or am I missing something? Taxes have already been filed so I am thinking I may have to amend the return. 

[CatinaT1 · Accepted solution]

This is a result of a major 2025 Wisconsin tax law change that forces you to choose between two benefits.

Starting with the 2025 tax year, Wisconsin introduced a $24,000 retirement income subtraction for individuals aged 67 or older. However, there is a "catch" built into the legislation: If you claim the $24,000 retirement income subtraction (on Schedule SB), you can't claiming the School Property Tax Credit, the Married Couple Credit, and several other state credits.

TurboTax is programmed to perform a "Best Interest" calculation. For most taxpayers, subtracting $24,000 from their taxable income saves significantly more money than taking a $300 credit off their tax bill.

If you or your spouse are 67 or older, TurboTax likely applied the $24,000 subtraction automatically because it resulted in a lower total tax. 

Here's how you can verify this is what happened:

1. Go to Forms Mode.
2. In the list of forms on the left, find Schedule SB.
3. Look at Line 16 (Retirement Income Subtraction).
4. If there is a number there (like $24,000 or $48,000), that is why your Property Tax Credit is missing.
5. Also, check your WI Form 1, Line 17. If your "Tax from tax table" is already $0 because of the retirement subtraction, the property tax credit (which is non-refundable) would have nothing to offset anyway.