How do I select Itemized Deductions when the turbotax program is selecting Standard Deduction? I itemized deductions on my entry.

Forum|Forum|5 years ago
March 14, 2021
3 replies
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I itemized deductions as I completed the program - resulting in $1802 tax due amount. But the program puts in the standard deduction resulting in a higher tax due amount of $1814, even though I've clearly selected Itemized deductions.

TurboTax Self Employed Online

Best answer by macuser_22

Hi Dave. Thanks for trying to help. As of my last post I had already completed both my federal and state returns - both were accepted. So probably too late to make a change, and don't think it would make enough difference to make it worth it. I was just trying to understand a confusing part of the online preparation of my return. Maybe it'll work out better next year.

It just made me wonder why I'm tracking all of these charitable contributions if somehow I'm not eligible to do itemized deductions.... weird !

For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

SweetieJean

Employee

Your self-employment (Schedule C) expenses don't count towards the ones used for Schedule A itemized deductions (which are then compared to Standard).

Also, not all Schedule A ones count at 100%. There is a $10,000 cap on states/local/property taxes, and Medical is subject to a 7.5% of AGI floor.

ward-mann-gmail-Author

More specifically, I entered $5576 in charitable deductions, and the program forced me to enter only $300 for charitable deductions on line 10b of 1040 form. I wasn't directed at all to complete a Schedule A even though the program said I'd save $12 by doing itemized vs standard deductions. $12 isn't much. So rather than delay I simply went with the only choice the program was giving me - Standard Deduction. That part was confusing and there was no explanation during the process, at all.

DaveF1006

It depends. If you have itemized deductions amounts more than your standard deduction, then it makes more sense to itemize. Try this to see which will give you a bigger return.

Log in or open Turbo Tax
Go to federal> deductions and credits>
When you see the summary for all tax breaks, press continue through all your screens until you see a screen that informs you that the Standard Deduction is Right for you. Here you have an option to change to itemized deductions. i will include a screenshot at the bottom of this post to illustrate this.
When you change, continue to the next screen to erase the $300 donation that appears. You are only eligible for this if you take the standard deduction.
After doing this, if you determine the standard deduction is better after all, go to your itemize deductions and remove your entries and then go back and put the $300 donation back in the end.
Here is the screenshot that illustrates the standard deduction screen and what you must do to change to itemized deductions. make sure you select both boxes illustrated in the screenshot. If you change your mind, be sure to uncheck these boxes before putting back in the $300 charitable donation at the end.

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suenatkins

It is to my advantage to itemize for my state taxes but TurboTax keeps choosing the standard deduction and would not let me change. I found a work around. Go to forms. Click on info wks. Go to part VI and check one of the three boxes. Hope this helps.

Poppie

Thanks. This was the only solution that worked for me. As a software engineer, it is hard to believe that this option is buried under Info WKS! One click and I saved $1700.

coppens1

Dear Forum, on a 1040 I have standard deductions totaling $34069, but the Turbotax Deluxe program is only taking the standard deduction of $30700. I found a solution on the forum, by using the interview process, but I think it is very time consuming, and very poor programming.

The interview section is the ONLY PLACE this is covered!

I normally use the forms, not the interview section. Overriding the standard deduction should be a choice in the forms, not something covered ONLY in the interview section.
JC

DoninGA

Employee

@coppens1 The TurboTax program will automatically use Itemized Deductions if the amount of Itemized Deductions is greater than the Standard Deduction for your filing status.

The total Itemized Deductions is on Schedule A Line 17. Is the amount on your Schedule A Line 17 greater than your Standard Deduction of $30,700?

Also, there are options on the Federal Information Worksheet in Part VI for Standard Deductions/Itemized Deductions