On the Federal Review Tax Breakdown screen, why does it tell me I have $21,836 in deductions then say I get the standard deduction of $12,950 for a Single filer?

[jloewenberg1]

This is on the the Federal Review explainwhy/Tax Breakdown screen for the 2022 tax year... Doesn't that seem off??

[Critter-3]

Those are your ITEMIZED deductions and you get to take the larger of the standard deduction or itemized deductions.

[jloewenberg1]

But then why does it say my itemized deduction is only $1,807 when I drill into why they're choosing to give me the standard deduction on the screen in the third screenshot attached? #1#2#3#4

[Bsch4477]

Not sure what your confusion is. Your standard deduction of 12,950 is greater than your itemized deductions of 1,807 so the program is correctly giving you the larger standard deduction. 

[taxlady28]

I see the confusion and have no idea what is causing it.  Contact TurboTax support and have them go through this return and see what is causing this.

[VolvoGirl]

The $21,836 is probably all the deductions you entered but some deductions are limited like Medical and Taxes.   Did you enter any Medical?  For Medical only the amount over 7.5% of your AGI is deductible.  

[taxlady28]

VolvoGirl is such an amazing asset for this board.  She is so familiar with the software and can identify and then clearly explain the issues.  What a great answer.  

[jloewenberg1]

Yes, I did but only $2,086.00 so I don't think that's making up the full difference. Anything else that could be causing this you think? @taxlady28 @VolvoGirl 

[NCperson]

@jloewenberg1 - can you please post a screet shotof the $21,000?

I wonder if you are self-employed and the difference is the QBI deduction?  

there are otherwise 4 categories of itemized deductions

1) Medical - limited to the part that is over 7.5% of your AGI

2) State and local taxes - limited to $10,000

3) mortgage interest - limited in certain circumstances (mortgage over $750,000)

4) charitable contributions  - limited if exceeds a large portion of your AGI

[Critter-3]

I highly recommend you  review the actual return to see what is happening ... you can even try it both ways ... standard & itemized so you can understand this concept  better. 

Click on the tools function ... then print options to see a PDF of the return with & without the worksheets. 

See this if you need to learn more about standard vs. itemized deductions: https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/standard-deductio...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/change-standard-d...

[jloewenberg1]

Which screen are you referring to? The one where it shows the $21k is shown in an above post by me... but you may be on to something with QBI hunch since I am self-employed. How do you think that's playing into this? @NCperson , a quick response would be much appreciated since I need to file by EOD tomorrow I'm pretty sure...

[jloewenberg1]

On second thought, I don't think just the QBI is making up the difference when I go to the Tax Summary page via the Tools function @Critter-3 mentioned, you can see that the QBI deduction for me is on about $1k... let me know what you think @NCperson 

[NCperson]

@jloewenberg1 frankly, I would just file the return and worry about it later.  It is highly, highly unlikely it is incorrect.  

Also, since you are self employed, half the self-employment tax is also an :adjustment"".  that could make up the remaining difference.  

on the tax return, look at lines, 10 (normally just 1/2 of self-employment tax), line 12 (standard deduction) and line 13 (QBI) - is that the $21k.