Montana standard deduction overwriting desired itemized deductions

Forum|Forum|2 years ago
March 25, 2024
2 replies
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I have filled in all my itemized deductions on my Federal forms in TurboTax desktop even though a file my Federal taxes with the standard deduction. When I go to work on my Montana State taxes, I specify that I want itemized deductions. I go through all the forms and come up with itemized deductions that are much higher than the standard deduction. Turbo tax is ignoring my itemized deductions and is giving me the standard deduction on Form 2. The itemized deductions listed on page 7 are correct, but they don't post to line 15 on Form 2. I am using the status of married but filing separately on the same form and I have allocated all income and deductions properly.

Best answer by trbundy

Another possibility as nobody yet chimed in: You already filed. At this point you would have to amend the return and maybe that is why it won't let you change it since it was accepted. The system knows it was accepted.

Thanks for all your help. I got my problem solved and filed an amended MT state return.

maglib

Employee

@trbundy In the Montana section, you will see a screen called "Itemized Deductions." Tap Yes to Do you want to itemize deductions on your 20XX Montana return?

When you and your spouse file, you must both use the standard deduction or itemize deductions. You cannot use two different methods. If one spouse itemizes, the other must itemize as well. As many do MFS, this often causes confusion.

Tax advice for Montana from laser1040:

Montana Tax Tips

Montana Tax Tips

Most Montana taxpayers should itemize on their state tax return. The federal withheld is often already more than the standard so the rest of the deductions are all extra tax refund dollars.
Married couples both working should often file separate on Montana even though they file joint on the federal. Tax deductions with the exception of taxes and insurance withheld or job expense can be claimed by the taxpayer they benefit the most.
Married couples with investment income that is over $2500, especially if social security is involved should check to see if it is cheaper for them to file separately on Montana even though they file the federal jointly.
Handicapped children are allowed an extra exemption on Montana for the parents. Dependent students can also be claimed on Montana even if they have not been claimed on the federal by the parents.
Montana first time home buyers can deduct their entire down payments on a house if they have planned ahead and opened a first time home buyers account prior to the closing on their home.
The Montana college savings accounts can save up to $330 state tax. This account should be opened at least 4 years before the student is ready to go to college and can later be transferred to other family members.
If you are a wealthy taxpayer a planned gift is perhaps the best annuity investment you can make because of liberal tax credits in Montana. To know if this would benefit you would need to consult your accountant.
Montana medical savings accounts can save up to $330 per taxpayer. Anyone can open these accounts even if they have low deductible health insurance. Call Laser 1040 for details.
New rules apply this year for Foster children. Both federal and Montana rules have changed. Foster children must be closely related to you or placed in your home by a bona fide agency.

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.

trbundyAuthor

Employee

I did select YES to the question on whether I wanted to itemize deductions on my Montana 2023 return. TurboTax led me through all the itemized deduction forms. It created a perfectly good page 7 showing all my itemized deductions split between my wife and I. It just did not move those results to line 15 on Form 2.

maglib

Employee

did you try going through the interview again? you are sure that both of your are set to iitemized. Do you have a Montana state tax liability still? Which version of Turbotax are you using?
go to the state tab section in your return. Scroll through the interview questions until you reach a screen asking if you wish to take itemized deductions. Here you will say yes and the federal itemized deductions you entered will populate into your Montana return.
Now your itemized deduction amounts, including state taxes that were withheld from your W2 will now appear on line 15 in Form 2.

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If this doesn't work i will check with experts.

SuziM

Community Manager

Greetings!

  Thank you for reaching out and sharing your experience. Since it seems we’ve exhausted any known troubleshooting, we would like to investigate this issue further. If you’re willing, we would like to ask if you could provide a Diagnostic File of your return. This copy will be purged of all personally identifiable information. If you are willing, please follow the instructions provided below to get us the information we need.

TurboTax Desktop 

Open your return. 
Click “Online” and select "Send Tax File to Agent". 
This will generate a message that a diagnostic copy will be created. Click “OK”. The tax file will then be sanitized and sent to us. This action will generate a Token Number
Please respond directly to this message and provide the Token Number that was generated.