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jdvinson33
New Member

My property taxes (approximately $6800) are not impacting my tax burden. When I set it to $0 my tax burden stays the same. What could be causing this?

 
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HelenaC
New Member

My property taxes (approximately $6800) are not impacting my tax burden. When I set it to $0 my tax burden stays the same. What could be causing this?

There are various reasons why your property taxes are not  affecting your tax liability

  1. One of the reasons your real estate taxes may have no impact on your refund is because your Schedule A, Itemized Deductions are less than your standard deduction.  If the standard deduction amount is greater than the itemized deductions amount, TurboTax enters the standard amount.

To see if TurboTax is using the standard deduction or itemized deductions, you can preview your 1040:

  • Click on My Account.
  • Click on Tools choose view Federal Tax Summary.
  • In the same row as Tax Timeline, choose Preview my 1040.
  • Scroll down to Line 40 for Form 1040 or Line 24 for Form 1040A.
  • To get out of Preview my 1040, click the back button that is in the same row as Tax Timeline.

     2. Another explanation is, if your Adjusted Gross Income is less than your itemized deductions, your refund will not change. 

     3. You may be subject to Alternative Minimum Tax (AMT). In calculating the AMT, you cannot take itemized deductions for state and local income tax, real estate taxes and personal property taxes, even though these are deductible on your regular return. Please see the article(s) below.

It’s calculated at the same time as your regular taxes. If the alternate method results in a higher tax, the difference between it and your regular tax is the AMT tax - the extra tax you'll pay.  

TurboTax will calculate this tax as you’re doing your taxes and let you know if you owe this tax. If you have the AMT tax, it will be on your Form 1040, line 45. Your return will also include Form 6251 that shows the calculations for your AMT tax. 

Related information:

Why didn't my refund change when I entered my mortgage interest and property tax?

https://ttlc.intuit.com/replies/4848485

How does the itemized deduction differ from the standard deduction?

View solution in original post

1 Reply
HelenaC
New Member

My property taxes (approximately $6800) are not impacting my tax burden. When I set it to $0 my tax burden stays the same. What could be causing this?

There are various reasons why your property taxes are not  affecting your tax liability

  1. One of the reasons your real estate taxes may have no impact on your refund is because your Schedule A, Itemized Deductions are less than your standard deduction.  If the standard deduction amount is greater than the itemized deductions amount, TurboTax enters the standard amount.

To see if TurboTax is using the standard deduction or itemized deductions, you can preview your 1040:

  • Click on My Account.
  • Click on Tools choose view Federal Tax Summary.
  • In the same row as Tax Timeline, choose Preview my 1040.
  • Scroll down to Line 40 for Form 1040 or Line 24 for Form 1040A.
  • To get out of Preview my 1040, click the back button that is in the same row as Tax Timeline.

     2. Another explanation is, if your Adjusted Gross Income is less than your itemized deductions, your refund will not change. 

     3. You may be subject to Alternative Minimum Tax (AMT). In calculating the AMT, you cannot take itemized deductions for state and local income tax, real estate taxes and personal property taxes, even though these are deductible on your regular return. Please see the article(s) below.

It’s calculated at the same time as your regular taxes. If the alternate method results in a higher tax, the difference between it and your regular tax is the AMT tax - the extra tax you'll pay.  

TurboTax will calculate this tax as you’re doing your taxes and let you know if you owe this tax. If you have the AMT tax, it will be on your Form 1040, line 45. Your return will also include Form 6251 that shows the calculations for your AMT tax. 

Related information:

Why didn't my refund change when I entered my mortgage interest and property tax?

https://ttlc.intuit.com/replies/4848485

How does the itemized deduction differ from the standard deduction?

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