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February 28, 2022
Question

Turbo Tax appears to be ignoring property taxes paid in resident state of Texas

  • February 28, 2022
  • 1 reply
  • 0 views

I work in Louisiana. Live in Texas. Pay prop taxes of close to $10k in Texas. I usually file a non-resident LA Tax form. This year, the almost $10k is being rejected as a deduction because it says that:

 

"You've maxed out the federal $10,000 deduction for itemized state and local taxes.";

 

I believe that it is taking the property taxes from Texas and adding them to the state taxes paid so far to Louisiana and using that for the $10k max even though I'm not a resident and Texas doesn't have any state income tax.

    1 reply

    Employee
    February 28, 2022

    Your deduction for state and local tax paid is capped at $10,000 no matter what state(s)  you paid it to.  And it is not just for state income tax.  It is any sort of state or local tax.    You cannot get the $10K deduction for your TX property tax and get more for paying tax to LA.    You have not mentioned how much tax you paid to LA.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    al101Author
    March 3, 2022

    I hadn't even put the LA prop taxes in when I got this message. But I was able to resolve this problem after talking with TurboTax support. There was an unrelated error on one of the other forms that I hadn't even filled out, but once that was resolved, I no longer got the message. I believe this was a bug in the software.