Question

Tax Year 2020 - Why is TurboTax not applying my itemized deductions when they are larger than the standard deduction?

Forum|Forum|5 years ago
February 20, 2021
5 replies
0 views

No matter what I do, TurboTax is only applying the standard deduction of 24800 when my itemized are larger at 25078

TurboTax Self Employed Online

If your itemized deductions are greater than the Standard Deduction, TurboTax will automatically use the itemized deductions on your Schedule A.

Some deductions are subject to limitations, so this could have changed what was the most beneficial deduction in your tax situation.

If you need to review your deductions or force the use of Itemized Deductions, please follow the steps below:

Open your return.
Click on Tax Tools on the left hand side.
Click on Tools.
Click Topic Search.
Search "itemized deductions, choosing"
Click on Change my deduction.
Choose Itemized Deductions under Which deduction do you want to take this year?

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Critter-3

Ok ... for 2020 & 2021 there is a new rule where you can take the standard deduction 24800 + 300 cash contributions which gives you an overall deduction of 25100 which is just a bit more than 25078 ... so the program is correct ... stop trying to fight it.

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mamiamjo

This is exactly what happened to me. Unfortunately the TT software is saying that Itemized Deductions is better, but when you continue it shows an error and wants you to enter an amount in 10b of the charitable giving form, under Standard Deduction, which according to TT I wasn't using (I was supposed to be better with Itemized). If you don't enter anything here (again I thought I was itemizing) it just loops you back to Deduction and then it starts all over again.

The software should've called out that I am allowed the Standard Deduction plus $300 cash deduction = $25,100 (which is slightly better than my itemized deduction) and tell me I should take the Standard Deduction. Instead it told me that Itemized is better, but then I keep getting the error because it's looking for an amount in 10b for Standard Deduction 😞

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1preguntas2

I am having this problem. I need help with switching to itemizing so mortgage and medical kicks in... called TurboTax and on the phone for a long time. I am not sure what to do, and I am not sure what I am not understanding. Do I really have to go to a professional and pay them to figure this out?

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Jojo1210

Why is Turbotax forcing me to use the standard deductions when my itemized deductions are higher?

LenaH

The reason for this could be if you are taking the charitable contribution deduction ($300 or $600 depending on your filing status) on top of your standard deduction. If so, the standard deduction may be more beneficial to you.

When you preview your return, is there an amount on your 1040, Line 12b?

Please follow these steps to preview your 1040:

Open your return.
Click on Tax Tools on the left-hand side.
Click on Tools.
Click on View Tax Summary.
Click on Preview my 1040 on the left-hand side.
Scroll down to your 1040, Line 12b.

Line 12b is your contribution deduction amount on top of your standard deduction. Considering Line 12b, your deduction may be greater if you take the standard deduction.

@Jojo1210

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misaelcabrera1970

I had the same problem. I'm using the downloaded version of Deluxe. When I left the UI and looked at the actual tax forms, my mortgage interest was not transferring to line 8a of Schedule A. I think this is a bug but I would like TurboTax to confirm... I spent a long time trying to figure that out. For the first time in 15 years, I'm doubting whether or not I should try a competitor.

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AKSnobear

My issue is the same; regardless that the $ return is the same, I WANT to file itemized, not standard. My reason is that this past year I was on workers comp, so my reportable income was lower than normal years. I need to file itemized ($26,414) so I can try to do deduction rollover for qualifying items in next years filing. So why is it trying to force me to accept only Standard ($12,950)?

DawnC

Employee

Verify that your Schedule A is showing a higher number for itemized deductions, as some deductions have limitations and you don't get to include the full amount. Follow the instructions in this help article to change your deduction choice. How do I change from the standard deduction to itemized (or vice-versa)? @AKSnobear

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A

AKSnobear

Schedule A shows the correct totals:

Property Tax $5640+Mortgage Int $13,238+$7536(limited) = $26,414.

Refund = $2176 (via both Itemized & Standard methods) the program interface just won’t let one change to itemized; keeps going back to Standard is Best for You.

I find this morning, when I use the print and mail version, and save the return, it says itemized, shows the itemized items, and shows all the deductions correctly. Then, going back and switching to the e-filing version, it shows items correctly. Guess I’m good to go?

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TomInACF

I'm having this problem on my 2022 return.

In my case, I retired about a year and a half ago, and my medical expenses are far in excess of 7.5 percent of my income. Yet TurboTax wants me to take the standard deduction.

I'm not sure why.

V

Vanessa A

If you are retired, how old are you? Are you married or single? If you are over 65 and single your standard deduction would be $14,700. If you are over 65 and both you and your spouse are over 65, then your standard deduction would be $28,700.

So, even if your medical expenses are greater than 7.5% of your AGI, they still may not be enough to surpass your standard deduction. Also, when you are calculating your medical expenses, remember, the first 7.5% does not count towards your itemized deduction.

So, if you have income of $75,000, only your medical expenses in excess of $5,625 would count towards your Itemized Deductions. So, if you had $10,000 in expenses, only $4,375 would be counted. You would then add that $4,375 to your state and local income and property taxes (up to $10,000), your mortgage interest and charitable donations (which can also be limited based on the organization). If all of that exceeds your standard deduction, then TurboTax should give you the Itemized Deduction instead of the standard deduction.

You may want to walk back through to check your deduction entries. You can also look at your Schedule A to see what the total of your deductions are as well as line 12 of your 1040 to see what your Standard Deduction is.

If for some reason your Schedule A line 17 is showing deductions greater than your line 12 of your 1040, you can go back through and select in TurboTax that you want to use the Itemized Deduction instead of the standard deduction.

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TomInACF

Thank you for your response.

I am, in fact, over 65 and single, making my standard deduction, as you point out, $14,700.

My income was $46,000 (I haven't yet started pulling money from my retirement accounts), and I had $17,000 in medical expenses. Total itemized deductions would be $21,000.

By the way, I saw a preview of my 1040 in TurboTax, but I wasn't able to find my Schedule A. Or does Schedule A only appear when TurboTax thinks you are itemizing?