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New Member
posted Mar 29, 2024 3:34:12 PM

Turbo tax is saying I've maxed out my $5000 Federal deduction for the Property Tax deduction, but the sum of all my property tax is less than $5000. Why?

Married filing separately (so $5k is the limit) and I have $3312 in real estate taxes and $579 in car registration fees. It's not even counting the car registration fees because it's saying I already maxed out.

0 2 2036
2 Replies
Level 15
Mar 29, 2024 3:39:43 PM

It includes your state withholding on W2 and any 1099 forms.  And if you paid a state tax due in 2023 like on your 2022 state return.  

Expert Alumni
Mar 29, 2024 3:40:56 PM

It includes your state and local income taxes as well as your state and local property taxes.  So when you entered your W-2, the state and local withholdings were automatically transferred to your itemized deductions.