Property tax deduction appears incorrect

[nrwahl]

I paid a little over $3,200 in property taxes according to my 1098. When I view my itemized deductions, TurboTax has deducted $10,000 (the max) for property taxes. Why is this happening? This seems like a bug, and one that could get me into trouble.

[VolvoGirl]

There are other taxes that count.  Like state withholding on your W2s and any 1099s.  And a state tax due you paid last year.  Any state estimates you paid it 2021.  All the taxes you paid are limited to 10,000 now.  Look at Schedule A to see what's being included.

[Mike9241 · Accepted solution]

review schedule A. real estate taxes are on one line, state income taxes on another, etc. you may be looking at a combined total for all taxes. if schedule A shows $10,000 for real estate taxes, then go back to the 1098 to check the real estate tax amount and make sure you didn't enter real estate taxes somewhere else.

[nrwahl]

Thanks, everyone. I didn't notice that state and local taxes were included in the deductions breakdown (on the same line as property taxes no less), partly because I didn't realize they were deductible. Until now I've never been in a position where itemized deductions made more sense than standard, so I'd never seen the breakdown.

Schedule A looks correct. So we're good.

[VolvoGirl]

Surprising you have enough total deductions to itemize.  Usually it's the other way around now.  People can't itemize anymore because the Standard Deduction has increased a lot.  Did you have a lot of medical or something?  Did your income go down?  

[nrwahl]

I've been fortunate. I bought a house last year (so mortgage interest is a factor now), and state income tax is higher than average where I live. State income tax plus property tax was greater than $10,000, and mortgage interest pushed it over the standard.