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Petermac
New Member

Why didn't my federal taxes due go down when I entered real estate taxes, personal propery taxes and mortgage interest?

 
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4 Replies
TomD8
Level 15

Why didn't my federal taxes due go down when I entered real estate taxes, personal propery taxes and mortgage interest?

If your standard deduction is greater than your allowable itemized deductions, TT will default to the standard deduction.  The program chooses the option that gives you the greatest benefit.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Why didn't my federal taxes due go down when I entered real estate taxes, personal propery taxes and mortgage interest?

I'm sure this is my fundamental misunderstanding, but I thought I had to overall choose either the standard deduction or to itemize deductions.  I will be choosing to itemize deductions (as I do each year) so how is it that this one thing can have the standard deduction applied to it?

Anonymous
Not applicable

Why didn't my federal taxes due go down when I entered real estate taxes, personal propery taxes and mortgage interest?

TT automatically chooses the higher of itemized deductions or the standard deduction (if you enter your itemized deduction info otherwise the standard deduction will be used)  you can override this choice to use the standard deduction even if less than itemized. you'll probably end up paying more in income taxes if you make this choice.

for married filing separate they both must use the same method. but TT goes through a series of questions to determine which should be used. 

Why didn't my federal taxes due go down when I entered real estate taxes, personal propery taxes and mortgage interest?

Now that the Standard Deduction is higher many people will be switching to the Standard Deduction.  And there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  And you can only deduct Medical that’s over 7.5% of your AGI.

 

For 2019 the standard deduction amounts are:

Single 12,200 + 1,650 for 65 and over or blind (13,850)

HOH 18,350 + 1,650 for 65 and over or blind

Joint 24,400+ 1,300 for each 65 and over or blind

Married filing Separate 12,200 + 1,300 for 65 and over or blind

 

If it's giving you the Standard Deduction and  not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in  itemized deductions, choosing.  It should highlight that in the list, click on GO

 

Then Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

 

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

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