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ssshah_99
New Member

I am using itemized deductions. When I enter my property tax there is no decrease in the federal tax owed. The state tax does go down. How can I correct this?

Can I look for this on this deduction on the forms or worksheets? Again, not sure why the federal tax does not go down with the property tax entered.

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JulieR
Expert Alumni

I am using itemized deductions. When I enter my property tax there is no decrease in the federal tax owed. The state tax does go down. How can I correct this?

Yes, you can look at the forms and/or worksheets by switching to the Forms view in your desktop software. 

One explanation for why you are seeing this is that your deduction for property tax may be subject to limitation by the new SALT tax limitation enacted due to Federal Tax Reform.  SALT is State and Local Tax, which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have.  You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.  

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2 Replies
JulieR
Expert Alumni

I am using itemized deductions. When I enter my property tax there is no decrease in the federal tax owed. The state tax does go down. How can I correct this?

Yes, you can look at the forms and/or worksheets by switching to the Forms view in your desktop software. 

One explanation for why you are seeing this is that your deduction for property tax may be subject to limitation by the new SALT tax limitation enacted due to Federal Tax Reform.  SALT is State and Local Tax, which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have.  You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.  

I am using itemized deductions. When I enter my property tax there is no decrease in the federal tax owed. The state tax does go down. How can I correct this?

Right, but your state tax return might not have such a limit.
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