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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.
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2 Replies

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?

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.  

Vanessa A
Expert Alumni

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?

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. 

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