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My property taxes is more than $10K and my state taxes also is more than $10K.

I know about the limitation of $10K : I can deduct up to $10K combined property tax and state income tax. How turbotax separates these? I'd like to deduct all my property taxes which will be $10K and leave my state income taxes untouched. 

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Accepted Solutions
DDollar
Expert Alumni

My property taxes is more than $10K and my state taxes also is more than $10K.

The IRS and (therefore TurboTax) does not differentiate (separate) between between the Property Tax and State and Local Income Tax when determining the "make up" of the $10,000 deduction if the combination of the two is greater than $10,000.  If it was property tax you didn't want to include, you could leave that amount out; however, you cannot do that with state and local income tax, as it is necessary to file your state tax returns.  It's as if you are mixing two liquids and then pouring out a certain amount of the mixture.

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5 Replies
DDollar
Expert Alumni

My property taxes is more than $10K and my state taxes also is more than $10K.

The IRS and (therefore TurboTax) does not differentiate (separate) between between the Property Tax and State and Local Income Tax when determining the "make up" of the $10,000 deduction if the combination of the two is greater than $10,000.  If it was property tax you didn't want to include, you could leave that amount out; however, you cannot do that with state and local income tax, as it is necessary to file your state tax returns.  It's as if you are mixing two liquids and then pouring out a certain amount of the mixture.

My property taxes is more than $10K and my state taxes also is more than $10K.

Now ... you  are not asking the right question ... you are probably worried about the state income tax being taxable next year ... do not worry about that.  Next year the computation to see how much of the refund is taxable will take the RE taxes into consideration first ... so stop worrying.

My property taxes is more than $10K and my state taxes also is more than $10K.

My property tax is only $4600, and I expected to have all of this count towards the $10k max on SALT. However, at the Federal Review page, Turbo Tax seemed to have only take $3900 towards my itemized deduction, and the remainder from my state withholding. Anyone know why Turbo Tax (Premier) is doing this? I did not see this issue with the Deluxe version.  

My property taxes is more than $10K and my state taxes also is more than $10K.

I think it may have an "order" to do it...like counting withholding first, then property taxes...for the very reasons iterated above.

My property taxes is more than $10K and my state taxes also is more than $10K.

Duplicate post 


And you don't get to decide ... the Sch A is what it is. 

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