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