deductions & credits

Forum|Forum|3 years ago
February 13, 2023
5 replies
9 views

In the comparison of 2021 and 2022 deductions and credits, I don't understand why the standard deduction is recommended this year but it wasn't last year. My itemized deductions last year totaled $15, 944. When I add up what it would be this year, it is $16,949. Yet the program recommends the standard deduction, which is more than $2000 less. Would the fact that I had more withheld this year cause the standard deduction to be recommended? Additionally, my medical expenses increased this year and by my calculations they are more than 7.5% pf my AGI, which was not the case last year.

SantinoD

Level 6

The program will determine the highest deduction for you. As long as the Standard deduction is higher than your Itemized deductions, the program will always choose the Standard since it is giving you the best possible outcome.

run4ottawaAuthor

Level 2

But, it is not higher than my itemized deductions. That is what I am not understanding. By my calculations, my itemized deductions total $16,949, and the standard deduction is $14,700. And that figure doesn't even include my medical expenses. They exceed 7.5% of my AGI by about $2,000. I should be able to add that to my itemized deductions, so they would exceed $18,000.

JamesG1

Level 15

In TurboTax Online, go to Federal / Deductions & Credits / Your tax breaks.

Property (Real Estate) Taxes may display a different amount than can be deducted on Schedule A Itemized Deductions because those deductions are subject to a $10,000 cap.

Medical Expenses may display a different amount than can be deducted on Schedule A Itemized Deductions because there is a 7.5% of AGI reduction.

Are you able to select Change my deduction at the screen Standard Deduction / Itemizing deductions is right for you?

Viewing the Schedule A Itemized Deductions will display the amounts which are deductible rather than the dollars that are entered into the software.

@run4ottawa

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