Hi, When I add my property taxes, the CA refund increased but there is no change in Federal Balance. Is it a bug or I miss something here?

[KrisD · Accepted solution]

The property taxes paid will be a credit on your state tax, but unless you itemize your deductions on your Federal return, rather than take the standard deduction, the property taxes paid will not affect your Federal tax liability. (and even then it may not count if your tax was zero'ed out before you include the property taxes paid)

The final Federal tax liability will also not change when adding property taxes paid if you are subject to Alternative Minimum Tax. (ATM)

[Edited 01.29.18 | 11:25AM]

[alipasha_ardakan]

Thank you for your response but I see the changes when I add Mortgage Interests.

[KrisD]

Do you have ATM calculating?

[alipasha_ardakan]

You are right, It is because of the AMT. Thanks

[Zbucklyo]

Make sure you are not subject to the Alternative Minimum Tax (AMT).  This will show on Line 45 of Form 1040.  Property taxes are not allowed as a deduction under AMT.  Your regular tax will go down on Line 44, but your AMT will increase to offset the reduction on Line 44.