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Level 1
April 14, 2026
Question

Bug: TurboTax 2025 recommends Standard Deduction when Itemized Deduction is better

  • April 14, 2026
  • 1 reply
  • 94 views

There is a bug where TurboTax Premier 2025 (Windows): it recommends the WRONG deduction.  It correctly calculates the Standard Deduction and the Itemized Deduction amounts, but it then recommends the SMALLER deduction.  In my case, the Itemized Deduction amount is greater (by a few thousand dollars) then the Standard Deduction, and I am receiving a refund.  The problem occurs when I select that I want the entire refund to be applied to next year's (2026) estimated taxes.  Turbotax then shows a Federal refund of zero.  After going back into the Step-by-Step deduction section and concluding that section, Turbo Tax calculates that with both the Itemized deduction and the standard deduction I will get a zero refund.  Turbotax apparently confuses this as a "tie" situation, and selects the Standard Deduction.  But in reality, the Itemized deduction is the correct amount to use.

 

Please refer to token 812196060-72369167

 

In the screenshot below, the standard deduction is $17,750 and the itemized deduction is $26,698.  Turbotax says "Standard Deduction is right for you".  This is a serious bug!

 

1 reply

MarilynG
Level 15
April 14, 2026

Go to FORMS and see what deduction was entered for you on Form 1040, Line 12e.  You're correct that when your refund is $0 (because you're applying your refund to 2026), TurboTax displays the Standard Deduction as the choice in the interview display. 

 

You should also see $0 on Line 35a and your Refund amount on Line 36, for 'Refund amount on Line 34 applied to 2026 estimated tax'.

 

@MrGrinch 

 

 

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