My property taxes were $2700 in 2020. I itemize. TurboTax is giving me a 10,000 credit and says my deduction is capped. Why is it saying 10,000 when I only paid 2700?

[penfoldpaul]

Thank you Volvo Girl

[VolvoGirl]

Well if you entered any state taxes paid like from withholding or a tax due last year it still should have showed up on line5a.  It seems to be adding it into the total.  Sounds like a glitch on line 5.  I wonder if they know?

[MegaM]

Was this question ever answered ? I have the same question this year. 

I purchased a home in late 2021, but I did not being paying property taxes until early 2022. Despite me answering in the TT software that I did *NOT* pay property taxes... TurboTax is saying I have maxed out the $10,000 deduction. 

Can anyone explain this? 

[SteamTrain]

The 10,000 Max refers to the total of property taxes PLUS any state income taxes.

So if your state income taxes paid during 2021, either thru withholding, or thru quarterly estimated payemnts.....if that total exceeds already exceeded 10,000, then you've already reached the max even though you haven't entered any property taxes.     Like, state withholding already entered with W-2, W-2g or 1099-R forms entered in the Wages&Income section.

[MegaM]

Thanks for the quick reply. As I continued reading through the instructions for Schedule A, line 5a, I was pretty sure this was the answer.

My W-2 does show state income taxes beyond $10k and I have not entered this on any other forms, so was hoping this was why. I don't think I've ever itemized deductions before, so this was new to me. 

Thanks for confirming my suspicions! Appreciate it.