Can I claim a property tax deduction on my state while claiming the standard deduction on my federal?

[wwjd_love4ever]

I live in IL and can claim property taxes, however I think I'm encountering issues since I got the standard deduction on my Federal.  Does this override me claiming the deduction on my state?  Am I only able to claim the deduction for my residential on federal if I itemize on my Federal return?

[HelenC12]

Yes, you can use the standard deduction on your federal return and claim the IL property Tax Credit on your IL state return so no, it doesn't override you claiming the IL property tax credit.

I created an IL test return to verify that you can take the IL Property Tax Credit if you claimed the Standard Deduction on the federal return and TurboTax generated the credit.

1. As you're going through the State of IL onscreen interview, on the Take a look at Illinois credits and taxes screen, select Start next to Property tax credit. 
2. On the screens that follow,  you'll be asked about your IL property including the county you live in, the Parcel Identification Number and the property taxes paid. 

[wwjd_love4ever]

@HelenC12 I am confused then.  I've been trying to get this resolved for a few weeks now and Ive had two people tell me different things.  One said to sign out of TurboTax and delete the cookies (did and nothing changed) and the other said the property taxes on my state essentially was for non-residential and to put 0 in both boxes then to claim my residential on my federal taxes (which I cannot do unless I itemize).  What am I doing wrong

[HelenC12]

I purposely used the TurboTax Free Edition to test the IL Property Tax Credit so I would not enter the property tax amount on my federal return.  Here are the screens that I completed to get the IL Property Tax Credit:

1. Log in to TurboTax
2. Select State from the left side navigation.
3. On the Was IL your state of residence all year? screen, I answered, Yes.
4. On the Your Illinois county screen, I scrolled down to Cook and Continue.
5. On the Here's the income that Illinois handles differently screen, scroll down to Continue.
6. On the Take a look at Illinois credits and taxes screen, scroll down to Property tax credit and Start/Revisit.
7. On the Credit for property taxes screen, Did you live in IL in 2020 and own your home there? screen, I answered, Yes.
8. On the second Credit for property taxes screen, I answered Yes to the four questions and Continue. 
9. On the Property information screen, at Personal residence, I entered the county and the PIN then Continue.
10. On the Property taxes screen, enter the Property taxes paid and Continue.
11. On the Your property tax credit screen, your property tax credit will be shown.

If you don't get these screens, I suggest you delete the state and re-install it. 

[missybeavers]

I was able to follow your steps and it does show that I would receive a credit, however when I run a review prior to submitting, it keeps taking me back to that section as if I need to review it (it comes up in red as if there is an error).  I am not sure what to do differently - can you help?

[AnnetteB6]

Usually if there is an issue that comes up during the review process, there is also some message on the screen that is telling you what the problem may be.  It could be something as simple as not entering all the digits of the property ID or something like that.  Please run the review again and see if there is any additional information on the screen that you can share so that we can help you get it corrected.  

@missybeavers 

[missybeavers]

I have attached a screenshot of the messaging. It just takes me back to the credit for property tax section with no direction on what is causing the error. Help!

[IsabellaG]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the  directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear. Select Tools  
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
   Please provide the Token Number that was generated in the response.
   
    

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number that was generated in the response.  

*(If using a MAC, go to the menu at the top of the screen, select Help, then Send Tax File to Agent”)

[missybeavers]

Great - my token number is 1277369.

I should add that I only get this error when I select State Review but when I select Review (all) it indicates that I have cleared all of my errors.

Thanks so much for your help!

[IsabellaG]

Looking at your file, I see no errors in either the state or federal returns. If you can get past this message and continue to file your returns, I advise you to do so. There is nothing in your state return that should prevent efiling.

[missybeavers]

Ok - thank you for your help - I appreciate it!