Question

Do I also get Property, state, and local tax deduction if I only paid mortgage

Forum|Forum|3 years ago
March 14, 2023
1 reply
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I bought a house with my girlfriend in 2022. I paid all mortgage and she paid all property tax.

In federal itemized deductions, I entered the mortgage interest $11,139 on 1098 form. Then turboxtax automatically generated adjustments $5,758 which is one part of the final deductions. Does anyone know how this number is calculated?

More interestingly, turbotax also included $10,000 under the category "Property, state, and local tax deduction (limited to $10,000)". But I didn't enter any property tax. I feel like this is wrong. Does anyone else also have this issue and know what is going on?

Thanks for the help!

TurboTax Premier Online

D

DavidD66

The $10,000 for "Property, state, and local tax" is probably the state income tax withheld from your W-2. The $10,000 limit includes, real estate property tax, personal property tax, and state and local income tax. If your mortgage is over $750,000 (and you entered that amount in TurboTax) then the program will reduce the amount of interest you can deduct. You can only deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness.

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L

lxdjamesleeAuthor

"The $10,000 for "Property, state, and local tax" is probably the state income tax withheld from your W-2" This is in the federal itemized deduction. How is the state income tax relevant here?

"If your mortgage is over $750,000 (and you entered that amount in TurboTax) then the program will reduce the amount of interest you can deduct" Could you explain how it got to adjustments $5,758?

Thank you so much!

J

JulieS

You are allowed to deduct up to $10,000 of state and local taxes on your federal tax return. For most people this the amount of state and local taxes listed as withheld on their W-2 form in boxes 17 and 19. It can also include:

Real estate taxes.
Personal property taxes.
State and local sales tax.

As far as the mortgage interest limitation, the limitation is based on what you have entered in TurboTax. Your mortgage interest is limited when:

You are not the sole owner of the property.
Your total debt is more than $750,000
Some of your interest is due to a home equity loan that was not spent on buying or improving the home.

To give you a detailed explanation of exactly why your mortgage interest was limited, we would need all of the details of your mortgage interest and how you entered it in the TurboTax. If you want a more detailed explanation, please provide more detail.

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