Question

Why is TurboTax not accepting the itemized deduction for federal return although it is higher than the standard deduction?

Forum|Forum|5 years ago
April 9, 2021
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TurboTax Deluxe Online

Employee

Are you a dependent or filing as Married filing Separate? Some deductions are limited now.

There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

If it's giving you the Standard Deduction and not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in itemized deductions, choosing. It should highlight that in the list, click on GO

Then 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.

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-itemized-or-vice-versa/00/25831

And see FAQ on 2018 changes https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

M

mu23

I have $10,000 for state and local, $15,000 for mortgage interest, and about $11,000 for donations for a total of $36,000 for itemized deductions. This is very similar to last year and last year Turbo tax recommended that I take itemized deductions. But this year Turbo Tax is saying I'm better off with a standards deduction of $25,900. On the Turbo Tax Deduction and Credit page, it's not showing my potential deductions; its just showing zero for everything and telling me to take the standard deduction. I'm not sure what is going on here.

LindaS5247

It could be that your deductions have been limited due to recent tax law changes and it put you just under that standard deduction.

For 2022:

The total amount you are claiming for state and local sales, income, and property taxes cannot exceed $10,000.

You must itemize deductions in order to deduct gifts to charities. Also, cash donations are limited to 60 percent of your adjusted gross income. This is a change from the last two years, where cash donations were limited to 100 percent of adjusted gross income.

You can chose to change your deduction from what TurboTax recommends to see what happens with your taxes.

You can preview your return in the TurboTax CD/Download software, to see what changes take place, by following these steps:

With your return open in TurboTax, select Preview from the File menu at the top. (If you don't see "Preview," open your return, not just the program).
In the pop-up window, choose the set of forms you wish to see (all official forms, specific forms, etc.) and select Preview.
Scroll down to view all the forms if you chose to preview multiple forms.

You can view your entire return or just your 1040 form before you e-file in TurboTax Online, to see what changes take place, by following these steps:

Sign in to your TurboTax account
Open or continue your return
Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
With the Tax Tools menu open, you can then:
- Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
- View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

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M

mu23

Thanks for the information. I previewed my Schedule A and saw that I wasn't getting my mortgage interest deduction. However, I'm getting it now; that is, itemized deductions. I think I answered a question wrong in the mortgage interest section.