If you want to enter property taxes then you are wanting to use itemized deductions--which cannot be done with the Free Edition. However---will you have enough itemized deductions to make a difference? If your itemized deductions do not exceed your standard deduction it will have no effect. And there is a $10,000 cap on state and local tax you can get a deduction for.
STANDARD DEDUCTION
Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts) The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.
Your standard deduction lowers your taxable income. It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2020 Form 1040.
2020 Standard Deduction Amounts
Single $12,400 (+ $1650 65 or older)
Married Filing Separate $12,400 (+ $1300 if 65 or older)
Married Filing Jointly $24,800 (+ $1300 for each spouse 65 or older)
Head of Household $18,650 (+ $1650 for 65 or older)
WHY DO I HAVE TO PAY? I WANT THE FREE EDITION
The information that you can enter in Free Edition is pretty limited now. Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's. Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition. Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.https://ttlc.intuit.com/questions/4511011-what-happened-to-the-1040a-and-1040ez
https://www.irs.gov/forms-pubs/about-form-1040
If you qualify to use it, there is another full-featured free version of the software:
Try Free File:
You qualify if your income was $39,000 or less, or $72,000 or less if active duty military, or if you qualify for Earned Income Credit
https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program
Note: If you do not qualify to use Free File then you will have to upgrade to Deluxe or higher in the paid versions of the software.
Online Deluxe $40 State software $40
Or—-Use this IRS site for other ways to file for free
https://apps.irs.gov/app/freeFile/
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
