SALT property tax is not decreasing tax payment due in Turbo Tax Premiere 2022

[tompierce1records]

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?

This has nothing to do with the $10,000 SALT 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 federal tax payment is not changing when I increase, decrease or delate my property tax payment.

[DoninGA]

State/local income taxes or Sales Taxes are also part of SALT.  If those taxes for 2022 total $10,000 or more in 2022 then any property taxes paid will not affect the your total itemized deductions.

[AmyC]

If you work in a state that collects tax, you would hit the limit based on your income. DoninGA is correct that  SALT encompasses a bigger section. 

Reference: About Schedule A (Form 1040), Itemized Deductions

[tompierce1records]

Nope to all answers provided thus far:  I have zeroed out all other state and local taxes and there is no AMT.  Yet when I zero out property SALT payments, tax amount due is the same as when I enter the actual value of $13,000.   The property tax appears on the summary and on the forms - but there is no tax reduction in my tax payment due on my joint itemized return. 

[VolvoGirl]

Maybe it's giving you the Standard Deduction?  

If it's giving you the Standard Deduction and  not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in  itemized deductions, choosing.  It should highlight that in the list, click on GO

Then Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

[tompierce1records]

My return is itemized, so no I am not defaulting to the Standard Deduction

[DMarkM1]

The other item to check is where is your tax coming from?  The itemized deduction will reduce your income tax, but if that is already zero due to nonrefundable credits for instance, then your tax may be from schedule 2 and show up on line 23.  That may not change with the income deduction. 

Try to see what is happening on the forms, lines 16-24 in particular.  Use forms mode in desktop versions or the steps below in online versions to see the federal forms.  (You could also print/download from the tools menu as well).  

1. Select "Tax Tools" in the left hand menu
2. Select "Tools" (or Print Center to print/download the forms)
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu 

[tompierce1records]

Thanks for the idea - But I have no tax credits and my tax due is still well in excess of $100,000 so the idea that tax credits are reducing my tax payment to zero is not relevant.

[AmyC]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the  directions below:

TurboTax Online:

Sign into your online account.

Locate the Tax Tools on the left-hand side of the screen. 

A drop-down will appear. Select Tools  

On the pop-up screen, click on “Share my file with agent.”

This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.

Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”

This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.