Program Error - Won't allow additional Mortgage Property Tax after LOAN Paid off

[jetav8r]

TurboTax Deluxe 2024 MAC

Application: 2024.r11.014

Build Date: Dec 25, 2024

ISSUE:

In the Deduction and Credit Tab, YOUR HOME, Mortgage Interest, Points, Refinancing, and Insurance - UPDATE

Upon Entering Mortgage data from a 1098 (on loan that was paid in full early in the calendar year) the Lender Reports "Real Estate Taxes Paid."  If you plug in the number from the 1098 you CANNOT add the additional Property Taxes that the INDIVIDUAL paid after the loan was Paid in Full. 

Example:  If I go to the next line down "Property Taxes" and click 'UPDATE" TurboTax will not allow me to add the additional Property Taxes I paid.  Instead, it says,

"We've got all your property tax info.   Right now, the Standard Deduction saves you the most on your taxes."

That is a total fail because TurboTax will not allow me to enter more Property Taxes I paid vs the Lender.

To FIX this I suggest you add a selection of.  "Was this Loan Paid Off in 2024?"  Did you pay Property Taxes and if yes how much.  Then add that to the Total Box in "Property Taxes."

[DawnC]

To add Real Estate property taxes paid separately from what is reported on your Form 1098, use the Property Taxes line instead of the Mortgage Interest line (1098 amounts go there).   Click on Deductions & Credits from the top menu while in the desktop program to get to the Property Taxes entry screen.  

Deductible real estate taxes, also called property taxes, include taxes paid at closing when buying or selling a home, and certain taxes paid to your town office, county, parish, or other tax assessor (either directly or through a mortgage escrow account) on the assessed value of your property or property in your taxing location.

You can deduct state and local taxes that you pay for real estate property that you own, such as your home, a second home, or land. 

[jetav8r]

Thanks for your reply but It still does not work.  Because I entered a portion of  Property Taxes in the Mortgage Interest line (1098 amounts go there) it auto populated that in the "Property Taxes" line. 

If I click on "UPDATE" in the Property Tax line the TURBO Tax Program says, "We've got all your property tax info"

The ONLY options the user has it to click "BACK or DONE" 

I cannot enter any Property Taxes I paid on a home without a Mortgage.

[Vanessa A]

We are currently looking into this issue, but in the meantime, you can take the following steps as a workaround.

If you are using the desktop version, you can simply select forms mode, then go to to the Home Mortgage Interest Worksheet and enter the total of what you paid as well as the amount from form 1098 on line 9 of the worksheet.

If you are using the online version, then you can go back to the entries and remove the property taxes from the 1098.  Then go back to Your Home>>Property Taxes and enter the full amount (what you paid and what was paid through escrow on your 1098) all at once in the Property Tax category.  

Entering it all together will not have any erroneous affect on your return as it all ends up in the property tax line regardless of where you enter it.  

[jetav8r]

Desktop version Mac.  I used the worksheet and just combined it all as suggested on line 9.

[MRP66]

I have this same issue. In my case, I have two properties. One property (primary) has a mortgage, the other does not. In the past, I was able to make a second entry under "property taxes" for the taxes paid on the property on which I do not have a mortgage. This year, I only get the message that I've maxed out my $10K SALT limit. I do not have the option to enter property taxes for another property. As a fix, I can go into the Schedule A and manually enter the tax on line 2C. Although it's not needed for the federal return, it makes a difference on my state tax.

[dm2165]

Same issue.  So, will there be an update to fix this issue this tax season?  Or can i add the taxes paid from my paid off second home onto the taxes I paid for my primary home (with a loan) within the lender information section?  Seems like a pretty big error on Turbo Taxes part.

[MonikaK1]

Some TurboTax Desktop customers who have both mortgage and non-mortgage property taxes paid that they need to report, may experience an issue when entering 1098 first, and non-mortgage property taxes paid afterward in Credits and Deductions. 

We’re currently working to resolve this issue. If you’d like to receive progress updates, please sign up at this tax help article. Otherwise, the workaround steps described by other users in this thread can be used.

@dm2165   @MRP66 @jetav8r