Delaware Itemize Deductions of Virginia Real Estate Tax

[forum_user_99]

Hi

I use TurboTax Deluxe federal and state.

We live in apartment in Delaware and work there. We have a home in Virigina for which we pay mortgage on and real estate tax. We file Delaware Resident Tax and Virginia non-resident tax as we spend more than 183 days in DE and also both our employers based in DE.

When I enter Mortage and Real Estate taxes in Federal return, there is no way to assign them to Virginia. Since in my federal taxes, i use standard deductions, VA is not allowing me to do standard dedections and there is not way to allocate the mortage/real estate taxes to VA.

Delaware automatically itemizes deductions even if i take standard deductions in federal. However it takes my mortgage and real estate taxes from VA into account during itemized deductions. I dont have any way to make it 0 against DE.  This makes me concerned that my DE taxes are incorrect as it is taking in account things it should not. The only way to avoid this is to delete the mortgage interest and real estate tax entries from federal. Then my DE tax is calculating 'correctly', but i feel i am not getting credit for my VA tax in VA return.

Itemizing Federal gives me lower deductions. Not sure how to solve this? Am i allowed to put mortgage interest and real estate tax in Federal and let turbo tax use that info in DE itemized deductions?

Any help would be greatly appreciated?

[MaryK4]

You do not have to make any adjustments to the home mortgage interest for the Delaware nonresident return.  You can use the federal itemized deductions for the Delaware return.

Delaware nonresidents prepare a state tax return 'as if" they were residents, then apply the percentage of Delaware source income to the total tax calculated.  As such, you can take any and all deductions allowed to a resident.  Delware allows the same federal deductions so it does not matter where the home is located of you are deducting home mortgage interest.  

[forum_user_99]

Thanks for the quick response. Just to clarify, I am filing as full year resident in Delaware as we do have our drivers license there, car registered there. We only commute to VA every now and then where we have our home, hence we file as non-resident. 

Are  you are saying, I am still ok to add mortgage interest and virginia real estate taxes to my federal taxes? even though, it does not do much to my federal taxes, it does bring down my DE taxes by about 1000$.