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Level 3
March 1, 2021
Question

NJ real estate tax deduction not carrying to return

  • March 1, 2021
  • 1 reply
  • 11 views

Very often I find the taxes paid on primary residence does not carry to the NJ return.  I typically spend way too much time trying to figure it out because I'd rather it just carry correctly instead of me entering an override, but usually just end up entering an override.  Anyone have any insight here?

Here is what I have entered:

On the general info page I have the municipality entered, in deductions I have the taxes entered under primary residence, under State & Local - other credits, I have Homeowner indicated, and under NJ Property Tax Deduction/Credit I have the block and lot number entered.

Still nothing making it to the NJ return.  If I indicate Force and the amount on the Property Tax Deduction/Credit page, then everything else populates on the NJ-1040 and appears as it should.

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1 reply

itonewbie
Level 15
March 1, 2021

It flows automatically on mine.  Did you check that your client qualifies and whether it's for deduction or credit?

So long as all the relevant entries are made, PTO would determine the proper treatment and flow the details to NJ-1040 without you having to enter 2=force.  Checking the diagnostics should help resolve most of these issues.

---------------------------------------------------------------------------------Still an AllStar
JeremyNJAuthor
Level 3
March 4, 2021

I agree, PTO should flow it automatically.  I used the chat help today and sent the representative the return I was working on.  She tried for 40 minutes and the best she could come up with add it to the state screen in the section that you would add it if it is different from the Federal.  I'm trying to avoid entering it twice or do any other manual action in addition to the proper place to enter it.

Since this happens somewhat frequently on a number of returns, I wonder if it is some problem with the files when the clients/returns were created when my data was converted from UltraTax a couple of years ago.

itonewbie
Level 15
March 5, 2021

Conversion could possibly be the cause since you can't see what got fed into the system.

---------------------------------------------------------------------------------Still an AllStar