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geo_berg
New Member

My AGI is $245,720. I just entered in my $11K home real estate tax deduction & my taxes due did not change (they should have dropped). Can you tell my why?

 
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My AGI is $245,720. I just entered in my $11K home real estate tax deduction & my taxes due did not change (they should have dropped). Can you tell my why?

Without seeing your return, the most likely reason is that as you enter additional itemized expenses your AMT increases. You can look at like 45 of your 1040 to see this.  Then remove it and look at line 45.  You will likely see that line 45 will decrease when you remove the real estate taxes. 

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6 Replies

My AGI is $245,720. I just entered in my $11K home real estate tax deduction & my taxes due did not change (they should have dropped). Can you tell my why?

Are you subject to AMT?
geo_berg
New Member

My AGI is $245,720. I just entered in my $11K home real estate tax deduction & my taxes due did not change (they should have dropped). Can you tell my why?

yes.  $9K so far
geo_berg
New Member

My AGI is $245,720. I just entered in my $11K home real estate tax deduction & my taxes due did not change (they should have dropped). Can you tell my why?

I see online that my head of household filing status allows my AGI to be over $280K before I am limited to deductions.  Since my AGI is $245K, I expected to get the deduction. So wonder why my tax due did not drop. Did I get the write off initially but then AMT increased (so I really didn't get any RE tax write off)?

My AGI is $245,720. I just entered in my $11K home real estate tax deduction & my taxes due did not change (they should have dropped). Can you tell my why?

I think you may be looking at the Pease limit on itemized deductions. That is different from AMT.
<a rel="nofollow" target="_blank" href="https://www.accountingweb.com/tax/individuals/how-the-pease-rule-impacts-itemized-deductions">https:...>
geo_berg
New Member

My AGI is $245,720. I just entered in my $11K home real estate tax deduction &amp; my taxes due did not change (they should have dropped). Can you tell my why?

ok, thanks for the reply!

My AGI is $245,720. I just entered in my $11K home real estate tax deduction &amp; my taxes due did not change (they should have dropped). Can you tell my why?

Without seeing your return, the most likely reason is that as you enter additional itemized expenses your AMT increases. You can look at like 45 of your 1040 to see this.  Then remove it and look at line 45.  You will likely see that line 45 will decrease when you remove the real estate taxes. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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