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Turbo Tax 2018 bug on evaluating property tax

Forum|Forum|7 years ago
February 14, 2019
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I just noticed (as of Feb 14 2019) that no matter what number (>0) I entered for the property tax, the next page always congrats me saying that I've maxed out the federal $10K deduction. And the Federal Tax Due on the top left corner (not shown in the screen shot) doesn't update accordingly after I input the property tax. Something must be wrong with software. BTW, I'm running the app on the Mac OS.

Best answer by nynj2me

With the new tax law, turbo tax took all the info- including property taxes, interest on mortgages, charitable deductions etc. as if you were itemizing. However, at the end, in our case, it all meant nothing because it was not over the new standard deduction levels. I bet if you look at your W2 and if you have a spouse who has a W2, you might have exceeded $10000 with just your State tax withholdings. If that is the case, it doesn't matter how much you pay in property taxes. If you want to see how much your itemized deductions are, vs the standard deduction, when you get to the review, it will say "great, the standard deduction is for you', or something like that. Then if you click "change my deduction", it will show how much your itemized deductions amounted to. In the end, I missed itemizing by $2.00. Which just means that perhaps next year, we will be itemizing again. This was the first year since 1985 we have not itemized!

N

nynj2meAnswer

With the new tax law, turbo tax took all the info- including property taxes, interest on mortgages, charitable deductions etc. as if you were itemizing. However, at the end, in our case, it all meant nothing because it was not over the new standard deduction levels. I bet if you look at your W2 and if you have a spouse who has a W2, you might have exceeded $10000 with just your State tax withholdings. If that is the case, it doesn't matter how much you pay in property taxes. If you want to see how much your itemized deductions are, vs the standard deduction, when you get to the review, it will say "great, the standard deduction is for you', or something like that. Then if you click "change my deduction", it will show how much your itemized deductions amounted to. In the end, I missed itemizing by $2.00. Which just means that perhaps next year, we will be itemizing again. This was the first year since 1985 we have not itemized!