When I enter my 2022 property tax expense, the tax payment due is not declining at all on my itemized return. My joint income is over $500,000 and my mortgage interest is being limited slightly....but when I enter $0, $50, and the full $12,308 paid in property tax, my tax payment due is not changing. Is there bug in turbo tax software this year?
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On Schedule A, your deduction of state and local income, sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).
So if your taxes other than property taxes in this category already exceed $10,000, property taxes will not add anything to your itemized deductions and will change your tax liability.
I'm aware of the limitation. The only SALT payment I've made is property taxes. When I zero out the SALT payment, my tax payment due does not increase....nor did my tax payment decrease when I entered the SALT property tax payment was entered.
Turbo Tax is recognizing the tax entry, yet my tax payment is not changing when I increase, decrease or delate my property tax payment.
You might be subject to the AMT Alternative Minimum Tax. 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.
For more information check Alternative Minimum Tax: Common Questions
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