State Credit for property taxes: not accepting input data I input the numbers and then when I hit continue, it tells me to review it again. Not sure why...

[tngriffin]

Hello @AmyC , I am also currently experiencing this issue. I just followed the steps and was in an endless loop. I have uploaded the clear form and my token number is: 1190622.

Thank you for your assistance.

[Adroz711]

Hi there I am having the same problem with my Illinois state tax return. Cannot get past what I paid in taxes for my house. My token number is:

1190637

Any help would be appreciated as this has become exhausting to try to get past.

[DMarkM1]

I downloaded your sanitized tax files to check your experiences.  All show you have claimed the IL property tax credit.  The credit correctly shows on your forms IL 1040, line 16 and on the Schedule ICR, lines 5 and 13. I utilized the "Review" function as well and there were zero errors all the way to the filing step.  

Typically, this indicates an update has not completed in your program.  Try closing everything, and signing out of your TurboTax account. If you are working with an online product you should also clear your browser cache.  A computer "restart" may help as well.  Here is a link that will help, if needed.  

For desktop versions after you restart and then sign back in, use the "Online" tab and "Check for Updates".  This should prompt any updates to finish.   

@tngriffin @Adroz711 @connorjegan 

[tngriffin]

Thank you for the response.

Unfortunately I am still unable to proceed past this screen and stuck in the loop.

I am using Chrome on a MacBook and there does not seem to be a way to check for updates.

[DawnC]

You don't need to update, as it appears you are using the Online version.   I looked at your return, and there are no errors on your return preventing you from e-filing.   Your property credit is reported correctly on your IL return.   If you click on File from the left menu, and proceed through the filing screens, you should be able to e-file successfully.   @tngriffin 

[benslow]

I was in the same endless loop, until I read this thread.

Interesting that your reply provides additional requirement that it does not say on the form- you say :

1. On the page Property taxes, enter the portion, if any, that was not for your principal residence in Illinois. Then enter the total of any property taxes that were deductible on your federal return AS A BUSINESS EXPENSE FOR A BUSINESS, RENTAL, OR FARM, WHETHER OR NOT YOU ACTUALLY TOOK THE DEDUCTION.  I entered $0 for both boxes. 

And the form simply states "Enter the total property tax you paid in 2023 and the amount of property tax paid that was not on your principal residence."

THIS IS THE PROBLEM! The form is misleading with an incomplete explanation for what scenario to reply.

I can now exit my endless loop.

[benslow]

Or so I thought I'd be out of the loop...and still in it. So my problem is not solved either. I'm going to clear cookies and shut this thing down for the night. Too annoyed to continue for now. And now I'm  confused again  whether to put in my taxes or put in zero based on the other chats here. I have a primary house - no rentals or farm. 

[DawnC]

If the loop is seeing the ''needs review'' message, that will not prevent e-filing.   Enter zeros in both fields and then check your state return.  If the credit is there (it has been there on every return I have checked), then you can file without error.  @benslow 

[benslow]

Hi @DawnC .   In order to get an IL 5% tax credit on my property taxes- it makes sense that I enter the property tax that I paid somewhere...but if I do NOT itemize federal- that amount is not entered anywhere in Turbotax.  Does this mean that If I use Turbotax and do not itemize the Federal, I lose the IL property tax credit? (because, otherwise, I qualify: You will qualify for the property tax credit if: your principal residence during the year preceding the tax year at issue was in Illinois, and. you owned the residence, and. you paid property tax on your principal residence (and taxpayer's federal adjusted gross income (AGI) does not exceed $500,000))

[DawnC]

No, you don't lose your credit.  You can take the credit on your IL return without entering it on the federal return.  Go back to the IL return and edit the Property Tax Credit section.   @benslow 

[benslow]

I did work through that section on my IL tax return. That's what put me in the 'review' loop. I'll ignore it going forward.

My property tax was very similar to the example that you used in screen shots. TurboTax showed the result of that calculation as $0 and I kept thinking that this was the error needing review. 

What I did find buried in Publication 108, Illinois Property Tax Credit was one single sentence that finally had it all make sense. Here is the last sentence on page 3. "Your property tax credit may only reduce the income tax you owe to zero. "

Since all of my income in retirement is SS, pension and 401k, It is not taxed by IL, and my tax is zero. The 5% property tax credit would have the state of IL paying me additional money beyond their already provided Senior Citizens Homestead Exemption and they're too broke for that!

@DawnC Thank you for patiently working through this issue with me.

[DawnC]

You are welcome and correct - the IL Property Tax Credit is a non-refundable credit, meaning it can't reduce your tax past $0.  

[HBWS]

If you take the Standard Deduction in the Federal Return, you will not enter your property tax on the Federal Return. Once you get to the State Return, it will display two boxes, one to enter the "Property taxes paid" and one for "Amount not on principal residence". For most people, the second box ("not on principal residence") will be zero. You can continue on just fine and TurboTax will tell you the amount of the credit and everything seems fine.

The problem is when TurboTax runs the review of the IL State Return, it will flag this as "Needs Review". 

However, if you go back into the Fed Return and try to enter your property tax, it will put up a screen saying, "We don't need this. You took the Standard Deduction." You can continue past that screen and enter your property tax info. 

When you go back to the Property Taxes page on the IL Return, it prompts you with two DIFFERENT boxes, "Property taxes NOT on residence" and "Property taxes deductible elsewhere". Put zeros in those boxes and it completes the State Return review process without any issues. 

It looks like there is a bug in the State Review code that looks at these numbers and flags them as a problem. I guess the workaround is to just ignore it. 

[lariviema]

The State of Illinois has always given a credit for your paid property taxes if you are a resident.

We do not have greater than $500,000 personal income for filing joint.   Why no credit?

[benslow]

The reason for no credit for property taxes is the result of owing zero IL income tax. All of my income was retirement and no IL tax was taken. Illinois is not going to give me a credit/refund  on my taxes when I owed none in the first place.  Had I had taxable income - the property tax credit would have come into play.