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Property tax deduction is not reducing federal or state taxes

When I enter property tax information into the table, turbot tax indicates I qualify for a deduction, but my tax calculation never changes.  Is there an error in the form or is there another reason I'm not permitted to deduct this tax?
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6 Replies

Property tax deduction is not reducing federal or state taxes

"Qualifying" for the deduction and actually getting tax benefit for the deduction are two different things.

Until ALL your itemized deductions exceed your standard deduction - which TurboTax enters into your income tax return right from the start - you will not see a reduction of your tax liability or an increase in your refund.

This is most easily seen by looking at Schedule A of your income tax return, though you can't see any Forms or Schedules using "online" TurboTax until you pay.  At this point I'd say keep plugging in itemized deductions.  When you're done with this exercise TurboTax should tell you if it's using the itemized deduction total or the standard deduction.  This sort of question has always been asked in here and it's very unlikely that it's a program error.

Tom Young

imuakoma
New Member

Property tax deduction is not reducing federal or state taxes

I exceeded standard deduction
imuakoma
New Member

Property tax deduction is not reducing federal or state taxes

I exceeded my standard deduction but adding more dedcution did not change tax

Property tax deduction is not reducing federal or state taxes

@imuakoma Please start a new post, rather than adding on to a very old post.  Check whether you are subject to the Alternative Minimum Tax, in which case state and local tax deductions have no impact on your overall tax liability.

Property tax deduction is not reducing federal or state taxes

The system of turbotax is calculating the property tax deduction at MAXIMUM of $10,000 which is for 2018 TAXES, NOT 2017 TAXES!!!!  PLEASE FIX THIS FOR ALL OF US!.  I paid $18452 in taxes and there's $0 change from $10,000 to $18,452!  Thanks.  I DO ITEMIZE AND TURBOTAX SAYS TO TAKE THE ITEMIZED YET IT DOESN'T TAKE THE ADDITIONAL $8452 deduct!!!

Property tax deduction is not reducing federal or state taxes

Check whether you are subject to AMT, line 45 of Form 1040.  If so property tax is disallowed.
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