Property Taxes

[drdilaura]

We sold our house this year and received back prorated portions of our property taxes. However, we took the standard deduction last year, the year in which these property taxes were paid. Do I have to claim the property tax refund this year?

[tagteam · Accepted solution]

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@drdilaura wrote:

Do I have to claim the property tax refund this year?

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No, because you did not receive a tax benefit on a prior year return.

See https://www.irs.gov/newsroom/with-new-salt-limit-irs-explains-tax-treatment-of-state-and-local-tax-r...

[SteveCh]

it will mot be enter the paid property taxes for the year

[JotikaT2]

All of your input needs to be entered in the Federal section of the return. 

1. Go to the Federal section in the left panel 
2. Select Deductions & Credits 
3. Go to All tax breaks, select Your Home 
4. Select Property (Real Estate) Taxes 

Please be aware if the total of your itemized deductions does not exceed the standard deduction amount, then the standard deduction amount will be used as it provides the highest tax benefit.

Standard vs. itemized

[RobertJoseph]

I cannot enter real estate property taxes either.  I went back and forward and I'm able to enter amounts in everything else but not my real estate taxes

[jensenm11]

I entered in my property taxes and it made no difference on my refund - it also does not let me adjust the $ amount - there is no way to update it?

[LenaH]

If your property taxes made no difference on your return, it could be because taxes, including state income tax and real estate tax are added together and limited at $10,000 total on your Schedule A. In addition, the amount of your itemized deductions would have to be greater than the standard deduction in order to benefit from your deductions. 

If you believe you made a mistake entering your 1098, you can follow these steps in TurboTax to check your input:

If you paid your real estate taxes through escrow and received a 1098 - 

1. Open your return.
2. Search for 1098 with the magnifying glass tool at the top of the page.
3. Click on Jump to 1098 link at the top of the page.
4. Click Edit next to your 1098 input.
5. Review your entry and make changes, if necessary.

If you paid your real estate taxes directly -

1. Open your return. 
2. Search real estate taxes with the magnifying glass tool at the top of the page.
3. Click the Jump to real estate tax link at the top of the search results.
4. Edit property taxes paid in 2020, if necessary. 

@jensenm11

[Brianp123]

Am I missing the answer to the question.   I can only see something around standard vs itemized but that should not stop me from filling in the field.   I am trying to enter property taxes for my primary home which are higher but it only has my second home which is lower.  Why can't I enter a value (and the application would determine if the standard or itemized deductions would be best)?

[DawnC]

TurboTax will choose the higher deduction for you automatically and you can enter property taxes no matter which deduction (itemized or standard) you are taking.  When you enter property taxes, enter the total for both properties in the property tax field.  

This deduction covers any property tax you paid on:

• Your main home
• Vacation homes
• 2nd home
• Land you own

It doesn't cover property taxes for rental or business properties.   To enter your property taxes:

If you're a homeowner, your property taxes are entered in the Deductions & Credits section:

1. Sign in and open your return if you're not already in it.
2. Inside TurboTax, search for property tax and select the Jump to link at the top of your search results.
3. Answer Yes to the question Did you pay property or real estate taxes in 2020?
4. Enter your property/real estate taxes on the next screen.

Important Additional Information

When your property/real estate taxes are included on your 1098, you’ll enter them as part of your Mortgage Interest in the property or real estate tax field.  If they aren't listed on your 1098, you’ll enter them separately as property/real estate taxes.   

Tip: If you own additional properties for personal use (like a cabin or timeshare), make sure to include the property/real estate payments for those as well.  Add them all together and enter the total (don't include anything you included from your 1098).   TurboTax will total both real estate taxes from your 1098 and the amount in the property tax field when determining your maximum deduction.  

Related Information:

• Where can I find out how much property (real estate) tax I paid?
• Can I deduct property (real estate) taxes?
• What's the difference between real estate tax, property tax, and personal property tax?
• What if my property (real estate) taxes are paid through my mortgage lender?
• Where do I enter income and expenses from a rental property?     @Brianp123

[footstool4]

I entered my property tax amount twice.

The software will not let me edit the amounts.

How can I change the amount?

Steve

[ErnieS0]

Property taxes on a personal residence can come from three places in TurboTax:

1. Rental Properties and Royalties if you used your home as a part rental,
2. Mortgage Interest, Refinancing, and Insurance, and
3. Property taxes

If you used your home as a part rental and TurboTax is splitting your property tax between rental expense and Deductions & Credits, go to Real Estate Taxes in the rental section. 

If you entered for property taxes along with Form 1098 you can edit your Mortgage Lender to remove Property (real estate) taxes paid from that section. Type 1098 in Search. Click Jump to 1098.

If you entered Property Taxes directly, type property tax in Search. Click Jump to property tax and remove the amount from Enter the property taxes you paid in 2020.

[gb09]

I also am not able to enter an amount in 'Property Tax on Your Main Home'.  I had a mortgage, but taxes were not included in that payment, so I did not enter an amount in "Property (real estate) taxes paid" on form 1098. It doesn't matter how I navigate to "Enter the Property Taxes You Paid in 2020", it will not let me enter an amount.  All fields on that screen are protected from entering an amount. 

[JohnB5677]

As you navigate through the deductions and Credits. Go to:

1. Property (Real Estate) Taxes
2. You will come to Enter any additional property tax you paid in 2020
3. If anything was listed in the mortgage section it will be indicated here
4. You can enter your Real Estate Taxes under Additional property (real estate) taxes
5. This is acceptable and will correctly post your taxes.

[gb09]

I've done that... more than once.  It never lets me enter an amount.  That box is protected from data entry.

[ErnieS0]

Are you able to enter the amount in the property tax box of Form 1098 (Property (real estate) taxes paid)?

It does not matter whether the taxes were paid through escrow or whether you paid them separately. The Form 1098 screen is a worksheet to put the numbers into the right place. It does not get sent to the IRS. It’s fine to enter property tax there, if you are able to.