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Why is NJ Property Tax Credit generating instead of Property Tax Deduction in Lacerte?
by Intuit• Updated 1 year ago
Lacerte is generating the $50 NJ Property Tax Credit instead of the $10,000 NJ Property Tax Deduction.
Why is this happening?
This is likely happening because the tax benefit from the credit is greater than the benefit would be for the deduction.
According to the Instructions for the 2020 NJ-1040, if the taxpayer doesn't decrease their tax liablility by $50 or more when claiming the Property Tax Deduction, they should claim the Property Tax Credit instead, because it's more beneficial to them.
Refer to step 8 of Worksheet H - Property Tax Deduction/Credit from the Instructions for the Current NJ-1040 for more information.
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