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sparticus-34
New Member

Why does my property taxes paid not reduce my federal tax amount

 
1 Best answer

Accepted Solutions
Marketstar
Level 7

Why does my property taxes paid not reduce my federal tax amount

There are two possibilities:

Until the sum total of your itemized deductions (ie. medical, mortgage interest, property taxes, charitable giving, ct) exceed your Standard Deduction, you will receive your Standard Deduction.

Standard deductions for 2016 

  • Single - $6,300 add $1,550 if age 65 or older
  • Married Filing Separately - $6,300 add $1,250 if age 65 or older
  • Married Filing Jointly - $12,600 add $1,250 for each spouse age 65 or older
  • Head of Household - $9,300 add $1,550 if age 65 or older

Secondly, if you are subject to the Alternative Minimum Tax (AMT)- 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.

See Alternative Minimum Tax: Common Questions

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/Alternative-Minimum-Tax--Common-Q...



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1 Reply
Marketstar
Level 7

Why does my property taxes paid not reduce my federal tax amount

There are two possibilities:

Until the sum total of your itemized deductions (ie. medical, mortgage interest, property taxes, charitable giving, ct) exceed your Standard Deduction, you will receive your Standard Deduction.

Standard deductions for 2016 

  • Single - $6,300 add $1,550 if age 65 or older
  • Married Filing Separately - $6,300 add $1,250 if age 65 or older
  • Married Filing Jointly - $12,600 add $1,250 for each spouse age 65 or older
  • Head of Household - $9,300 add $1,550 if age 65 or older

Secondly, if you are subject to the Alternative Minimum Tax (AMT)- 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.

See Alternative Minimum Tax: Common Questions

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/Alternative-Minimum-Tax--Common-Q...



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