Question

Why does my MN refund go DOWN when I enter a Property Tax payment (deduction) on my Federal return? I would expect it to stay the same or increase. Thanks

Forum|Forum|5 years ago
February 13, 2021
3 replies
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TurboTax Premier Online

Without seeing your return, it is difficult to guess why your state refund would decrease after entering a deduction. You can request an offline review. It could have to do with your income this year compared to last year or a number of other things.

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Jackie38Author

Thank you, I wasn't aware of that.

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Jackie38Author

Update. I've spent about 5 hours on the phone with TurboTax (I didn't pay extra for Live) and they finally sent it to a developer to check into. The first agent and their manager tried to get me to just not enter the amount of property taxes I paid to avoid the issue of my MN refund going down by $600. I should be able to enter my property taxes paid and trust that TurboTax is calculating correctly. Also, I want to make sure others don't get penalized without realizing it. I'll post another update when this question is resolved.

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Jackie38Author

TurboTax closed my case with no explanation. This is the second time this has happened this year and it's very frustrating. I'm willing to wait for an answer since I didn't pay for Live but it's not good customer service to close the case without a response.

Guess I will be leaving Turbo Tax now after all these years.

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Jackie38Author

I received an email about my issue so it sounds like it is being worked on.

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DoTheMath

I have seen the exact same thing. TurboTax MN is definitely picking the WRONG option for itemized vs. standard deduction in some cases with no obvious option or warning. As a software developer, I would call it a "show stopper".

I was able to force it by editing the itemized form in MN and deleting some itemized deductions which forced it to switch back to the standard deduction (saving me $500!)