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April 6, 2022
Question

Property Taxes paid in another state

  • April 6, 2022
  • 1 reply
  • 0 views

I live in Florida but work in Alabama. Property taxes are paid to the state of Florida. I don’t file a Florida tax return as no income is made in the state of Florida, but I do have minimal interest income from some savings accounts in Florida banks. I file a tax return for the state of Alabama. TurboTax pulls over my property taxes (paid in Florida) into my Alabama tax return which causes me to take the Itemized Deduction rather than the Standard Deduction. This just seems weird to me since these property taxes were paid for my Florida residence, not Alabama. Is TurboTax handling this correctly?

1 reply

April 13, 2022

Yes, it is correct.  

 

According to the Alabama Individual Income Tax Instructions for non-residents, the property tax deduction that is part of itemized deductions for the Alabama return can be paid for "property you own in any state that was not used for business."

 

For your reference, see the information on page 16 under lines 5 through 9:  Alabama Form 40NR Booklet

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