I'm own a house that I am renting out. On TurboTax, there is a tab in the INCOME section for income from rentals. On that tab, along with other pertinent info, I entered the amount of interest and property tax I paid for the year (there are specific fields in which to do this). I'm wondering I am also supposed to claim the interest and property tax in the DEDUCTIONS tab (like you would if you were living in a house that you own). I think the answer is no - it seems like I'm claiming the same deduction twice (and, in fact, my refund about doubles from ~$800 to ~$1500). Does anyone know the real answer?
Another thing I'd like help with, is if I am married filing jointly, and my state I pay tax to is different from my wife's (MI v. WA), how can I get TurboTax to recognize this. All of her income is in WA, which is tax-free. All of my income is for MI, which is tax-free for military income. But MI wants taxes to be paid on the money my wife made in WA. I can't figure out how to manually change this. Do I have the option of not filing in MI if I know I don't owe them any money? If I got audited, they'd figure that out, and I still would not be penalized, right?