Question

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

Forum|Forum|3 years ago
April 5, 2023
3 replies
0 views

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.

Ask the Experts - Refund - April 2023

DoninGA

Employee

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.

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genacgenac

Wrong. TTax fudged this up. Show me your 2022 MD return and I'll point out how. You can use fake numbers obv.

AmyC

Employee

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

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T

tompierce1recordsAuthor

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

Employee

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-itemized-or-vice-versa/00/25831

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genacgenac

You are certainly dead accurate -- ignore the bozo answers offered below. TurboTax failed to apply deductibility changes brought by the 2021 Maryland Relief Tax. I nearly found this out the hard way; imagine my delight to find FreeTaxUSA had no such trouble -- nor, as it turns out, did TaxAct. TurboTax has negative value-add beyond integration with its sister products. It has herd mentality appeal and little else.