Property tax deduction

[nshah]

I entered property tax paid which was reported in 1098 mortgage interest form and both fed and state tax due decreased as expected. However when I adjust it with additional amount for property tax, my fed due amount does not change. Only state amount changed. 

Is there any limit to property tax amount which can be deducted? I thought I can use 100% of property tax paid as deductible amount and hence any adjustment should adjust my fed due amount. 

Thanks

[CarolynM]

The property tax deduction is not a dollar-for-dollar credit. It merely reduces your income by the amount of tax paid. This is why you do not see a reduction in your federal tax return, but you do in your state return. 

For 2017, there is no limit to the amount of property taxes that can be deducted. One of the changes in the new tax law is a new limit of $10,000 for property taxes. However, this only affects your 2018 tax returns, to be filed next spring, not your current federal tax return.

For more information about tax deductions for homeowners, please follow this link: https://www.irs.gov/publications/p530