Question

Can I claim a property tax deduction on my state while claiming the standard deduction on my federal?

Forum|Forum|4 years ago
April 5, 2022
1 reply
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I live in IL and can claim property taxes, however I think I'm encountering issues since I got the standard deduction on my Federal. Does this override me claiming the deduction on my state? Am I only able to claim the deduction for my residential on federal if I itemize on my Federal return?

TurboTax Deluxe Online

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HelenC12

Yes, you can use the standard deduction on your federal return and claim the IL property Tax Credit on your IL state return so no, it doesn't override you claiming the IL property tax credit.

I created an IL test return to verify that you can take the IL Property Tax Credit if you claimed the Standard Deduction on the federal return and TurboTax generated the credit.

As you're going through the State of IL onscreen interview, on the Take a look at Illinois credits and taxes screen, select Start next to Property tax credit.
On the screens that follow, you'll be asked about your IL property including the county you live in, the Parcel Identification Number and the property taxes paid.

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wwjd_love4everAuthor

@HelenC12 I am confused then. I've been trying to get this resolved for a few weeks now and Ive had two people tell me different things. One said to sign out of TurboTax and delete the cookies (did and nothing changed) and the other said the property taxes on my state essentially was for non-residential and to put 0 in both boxes then to claim my residential on my federal taxes (which I cannot do unless I itemize). What am I doing wrong

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HelenC12

I purposely used the TurboTax Free Edition to test the IL Property Tax Credit so I would not enter the property tax amount on my federal return. Here are the screens that I completed to get the IL Property Tax Credit:

Log in to TurboTax
Select State from the left side navigation.
On the Was IL your state of residence all year? screen, I answered, Yes.
On the Your Illinois county screen, I scrolled down to Cook and Continue.
On the Here's the income that Illinois handles differently screen, scroll down to Continue.
On the Take a look at Illinois credits and taxes screen, scroll down to Property tax credit and Start/Revisit.
On the Credit for property taxes screen, Did you live in IL in 2020 and own your home there? screen, I answered, Yes.
On the second Credit for property taxes screen, I answered Yes to the four questions and Continue.
On the Property information screen, at Personal residence, I entered the county and the PIN then Continue.
On the Property taxes screen, enter the Property taxes paid and Continue.
On the Your property tax credit screen, your property tax credit will be shown.