How come Turbo Tax isn't reducing my tax due amount when i enter my property tax? Stumped on what is triggering this. I'm not aware of other SALT deductions i'm getting

[jecurtis100]

is this a software problem or am i missing something else that is making my property tax deduction nullified?

[MinhT1]

The most probable reason would that your standard deduction is currently higher than your itemized deductions. If and when you enter other itemized deductions such as mortgage interest or donations which make the total itemized deductions higher than your standard deduction, you would see a decrease in tax due (or an increase in your refund.

Please read this TurboTax Help topic for more information.

[jecurtis100]

hi MinhT1,

Thank you for your comments/ thoughts on my question.

I am currently set as using the itemized deductions and as I went through the process, i entered in my property tax before I entered in my itemized deductions.  I noticed right from the beginning that I wasn't receiving credit for my property tax.

Now that i have entered in all of my data, have wrapped it all up for both federal and state, i went back and deleted the property tax deduction and my amount owed to the federal govt didn't move by a single dollar.  When I added it back in, no movement either.

I cant help but think there is a SALT tax issue going on but i've read enough on irs.gov and the FAQs here on Turbo Tax to understand that i should be getting some level of incentive/ deduction for my property tax paid.  Perhaps a software problem with Turbo Tax or is there a tax guideline i'm not understanding correctly?

[MinhT1]

The SALT (state and local taxes) is limited to $10,000 ($5,000 if Married filing separately).

Are you sure that after entering all your itemized deductions including property tax, yor itemized deductions are greater than than your standard deduction?

Your observations lead me to think that your total itemized deductions (including property tax) are lower than your standard deduction. This is why adding or leaving out property tax has no effect on your tax due.

[jecurtis100]

hi MinhT1, 

yes, my itemized deductions are double than the standard amount and when i wrap up my deductions and credit section, in turbo tax, the screen shows me the figures and says that itemizing is the best option for me. 

i think this is just the SALT tax issue and it just is what it is.  Thanks so much for your help.

[KrisD15]

FICA tax, Social Security and Medicare payments are not "Income Tax". FICA payments are credited to your Social Security Account. 

Those payments are not refundable, they are not included as a deduction, and they don't get applied to your tax liability.

No, these payments do not count as Federal Income Taxes withheld.

The 10,000 cap is on State and Local Tax. 

Your deductible State Tax includes Property Tax PLUS either state income tax OR state sales tax. 

You may deduct

State Income Tax and Property Tax and up to a limit of 10,000

or

State Sales Tax and Property Tax up to a limit of 10,000

Once the amount hits 10,000, entering more Property Taxes won't change the deduction and won't affect your return.

"The state and local tax (SALT) deduction permits taxpayers who itemize when filing federal taxes to deduct certain taxes paid to state and local governments. The Tax Cuts and Jobs Act (TCJA) capped it at $10,000 per year, consisting of property taxes plus state income or sales taxes, but not both."

LINK

[VolvoGirl]

You have to look at your 1040 and schedule A to see why it's not affecting your refund or tax due.  Maybe you are already getting back all you can and more deductions won't increase it. Some Deductions are limited. Or you still owe for something else. Also after you reduce your income to zero there is no more refund to get back but you still may owe for other things like self employment tax or the 10% early withdrawal penalty from 401k or IRA accounts.

How to print your return before filing
https://ttlc.intuit.com/community/printing/help/can-i-print-a-copy-of-my-turbotax-online-return-befo...