Property Taxes

[soulwinner10]

Hello,

Do I enter just the net property taxes minus storm water or the actual amount I paid. The net property taxes and storm water is what I paid. Thank You.

[AnnetteB6]

It depends on how the storm water amount is calculated.  If the storm water amount is based on the value of your property, similar to how the property tax amount is calculated, then you could include the storm water amount as part of the property tax deduction.  

If the storm water amount is not based on the value of your property, then it is not deductible and you would only enter the amount of property tax that you paid.

[soulwinner10]

Okay, so, how would I know if it is based on the value of my property or not?

[soulwinner10]

Well, actually, I just looked it up in my area and it states that storm water it is not based on the assessed value of the home, but rather on the impervious surface area. I was told-in previous years- to just enter the total amount I paid and that is what I have been doing for years, which includes the storm water. What about all the other years that I did include the storm water? 

[AnnetteB6]

If you have mistakenly claimed the storm water amount along with your property tax in prior years, and you claimed itemized deductions during those years, then you may need to amend your tax returns to make the correction.  If you claimed the standard deduction, then no changes would be required at all.

However, for the tax years 2018 through 2024, there has been a limit placed on State and Local Taxes allowed to be deducted on Schedule A.  Property taxes were included in this limit.  The limit was $10,000 for Single and Married Filing Joint filers ($5000 for Married Filing Separate).  

If reducing the amount reported on your Schedule A line 5d by the amount of the storm water fee you paid did not drop your total below the $10,000 limit, then amending those returns would not be necessary and nothing would change if you did amend it.

[soulwinner10]

Thanks for replying. It is very helpful. When looking over tax returns (1040), what line is for itemized and for standard deduction. There is a rectangular box with the standard deduction amounts that correlate with a line -say line 12- and on that line is the standard deduction amount that I claimed. I have always claimed the standard deduction, but you mention line 5b...is that for itemized deductions? 

[JohnB5677]

Yes, line 5b is on Form Schedule A.  This is the form that your property tax, along with other itemized deductions would be listed on.

On your 1040 it is line 12e that indicates the amount of the deduction you took.  The standard deduction amounts (as you said) are on the left side of the page.

If you've taken the standard deduction this year and in previous years, your property tax bill is of no consequence, and no further action has to be taken.