Why are property taxes are having no effect on federal refund even though AGI is below the phase out amount and deductions are greater than the standard deduction?

[krabago]

Married filing jointly and AGI is les than $313,800. Itemized deductions with property taxes exceed $12,700 standard deduction.

[HelenC1 · Accepted solution]

You may be subject to Alternative Minimum Tax (AMT).

Good news:The number of taxpayers subject to the AMT is expected to drop dramatically in tax years 2018 through 2025, due to higher exemptions and phase-out thresholds.

In calculating the AMT, you cannot take itemized deductions for state and local income tax, real estate taxes and personal property taxes, even though these are deductible on your regular return.

If you have the AMT tax, it will be on your IRS Schedule 2, Part 1, Line 1. Your return will also include Form 6251 that shows the calculations for your AMT tax. 

Related information: 

• What is the Alternative Minimum Tax (AMT) in 2019?
• Why am I getting hit with the AMT (Alternative Minimum Tax)?

[Edited 3-10-2020|8:02 am PST]