Well I just received my property tax bill today :-[
Remember the good old days when we could deduct all of our SALT but now it's limited to $10K. Here's the question I'm pondering...we used to deduct the state income taxes (plus all the other taxes) paid in one year but in the following year we had to declare our state income tax refund as income. So now my property tax bill will exceed $10K by itself...pretty much like everyone who owns a home on this forum. It makes no sense to include my state income taxes in my deduction calculation because I don't need it to exceed $10K. I wonder, do I need to include it? Will TurboTax automatically include it - or give me an option to choose which taxes I want to include in my $10K? The reason I ask is because If I don't declare this deduction, then I don't have to declare the state income tax refund as income. Seems like a double whammy to be forced to declare the useless deduction but then be required to declare the refund as income.
Inquiring minds want to know. I'm sure there are numerous experts on this forum who know the answers!
Remember the good old days when we could deduct all of our SALT but now it's limited to $10K. Here's the question I'm pondering...we used to deduct the state income taxes (plus all the other taxes) paid in one year but in the following year we had to declare our state income tax refund as income. So now my property tax bill will exceed $10K by itself...pretty much like everyone who owns a home on this forum. It makes no sense to include my state income taxes in my deduction calculation because I don't need it to exceed $10K. I wonder, do I need to include it? Will TurboTax automatically include it - or give me an option to choose which taxes I want to include in my $10K? The reason I ask is because If I don't declare this deduction, then I don't have to declare the state income tax refund as income. Seems like a double whammy to be forced to declare the useless deduction but then be required to declare the refund as income.
Inquiring minds want to know. I'm sure there are numerous experts on this forum who know the answers!