why would adding my mortgage interest and property taxes not increase my refund

    Cancel
    Sounds like adding mortgage interest and property taxes to your Sch A still did not make to total itemized deductions on Sch A exceed your standard deduction.
    • so does that mean I am getting nothing for that or what?
    Cancel
    TurboTax starts off using the Standard deduction, so until your Itemized Deductions are higher than the Standard deduction your refund would not change.  Or it will just change a little at a time as you increase your deductions over the standard amount.

    Also by increasing your deductions it will decease your income and you may not be getting as many credits as before like the EIC credit. You can't go by the refund monitor until you have entered everything in.   Also after you reduce your income to zero there is no more refund to get back.

    And if you are able to itemize you just get a percentage of your deductions back. Like if you are in the 25% tax bracket for a $100 deduction you will get $25. It isn't added on to your refund. Deductions reduce your income so you get taxed on a lower amount.

    For 2011 the standard deduction amounts are:
    Single 5,800 + 1,450 for over 65
    HOH 8,500 + 1,450 for over 65
    Joint 11,600 + 1,150 for each over 65
    Married filing Separate 5,800 + 1,150 for over 65


    Owning a home and having a mortgage is not necessarily a good thing.  Any deduction benefit you get from the interest is still a lot less than all the interest you paid.  Don't buy a house just for the tax deduction.
      Cancel
      Contribute an answer

      People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

      1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
      2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
      3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
      4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
      5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
      Cancel