Transcript shows "Recomputed" Itemized Deductions.

[stuartboren]

TY21 return accepted but not yet approved.  My account transcript shows "Recomputed Total Itemized Deductions per Computer" with an amount ($2183) larger than the TurboTax amount!  I only have med, taxes ($10K), interest, and contrib.  Nothing complicated.  Any idea why their amount is different?  thanks.

[AliciaP1]

You may have had an item reported to the IRS on a form or in a box that you did not get entered into your return.  You will receive a letter from the IRS explaining the difference.

[stuartboren]

Thanks for your response.  Strange.  Same thing happened in TY20 where "recomputed deductions" were also about $2K larger than TT.   And for TY20, I haven't (yet) gotten a letter nor an additional refund.  My TY20 Tax Retn transcript still has the TT refund unchanged from the original amount, never recalculated due to the IRS "recomputed" deductions.  Zooming in...the $2K difference in deductions (TT v. IRS) can't be due to med, nor contributions, nor taxes (capped at $10K).  Therefore, it must be mortgage interest.  But the TY20 Wage & Income Transcript is correct.  However, a portion of the interest paid to bank (as reported on 1098) was not QMI.  So, my Sch A mortgage interest was less than what was on bank's 1098.   The balance was reported as deductible investment interest expense from Form 4952.  But that all looks correct.  I guess eventually I'll get a supplemental refund(s).  Or not.  At least it's in my favor.  Thanks for any other thoughts.  Meanwhile, I'm waiting for IRS "approval" before I submit my state return.

[Cynthiad66]

Remember, there could be other items on the return that translate to the Schedule A itemized deductions such as State and Local Income Tax Withholdings.  Sometime medical insurance reported on W-2 is picked up depending on the insurance.  So, all of this is clearly speculation, however, as AliciaP1 stated, the IRS will send a Explanation of Adjustments notice that will explain any changes and allow you to respond.

@stuartboren

[stuartboren]

Unlikely.  We're retired, so no W-2's.  Yes, there was CA state withholding (on investment property sold), but the $10K SALT cap has already been reached due to property taxes, so that state w/h would not allow any increase in that deduction.

So it's still a mystery.  The IRS's "Recomputed deduction" amounts shown on the Transcript occurred in TY20 as well as TY21, and I still have not gotten a letter of explanation for TY20.  My TY20 return was approved, even with the potential IRS "correction", so I'm hoping that the TY21 return will be approved quickly so I can file the state return.  Thanks again.

[stuartboren]

Thanks for your responses.  However, turns out that the "Recomputed total itemized deductions per computer" is the amount that the deductions would have been if taxable social security benefits had not been included in AGI!!  Removing taxable SS income from AGI increases the medical deduction, by 7.5% of that.  There is another item under "Tax and Credits" on the transcript labelled "Tax on income less Soc Sec income per computer".  Now, both of these items seem bizarre since taxable SS income IS included in AGI.  I'm not sure why the IRS has this info/calculation since it's not used.  Thanks again.