Standard deduction giving me HUGE refund

[krgy8888]

Good morning 🌞

I am faced with what I see as advice to take a HUGE handout on turbo tax; I generally itemize my deductions, and that has given me a modest return.  This year, turbo tax has calculated that I take the standard deduction, where I will then get over $18k back.  I'm alarmed at this; I feel this would subject me to an immediate audit, and don't think I should take it.  I will not see this again, as next year my filing will change to single as I will be divorcing before the year's end.  What would this mean for me to have this kind of income listed for this past year, when I will be facing everything on my own next year?  Seriously HUGE alarm bells ringing for me on this kind of handout.... 

KrGY8888

[Andrew_W]

As you are still married, there are only two filing statuses available: Married Filing Jointly (MFJ) and Married Filing Separately (MFS). For 2024, the standard deduction for MFJ is 29,200, and for MFS it is 14,600 (the same as filing single).

If your itemized deductions are less than these amounts, TurboTax will recommend the standard deduction, as it is the more favorable tax position. The standard deduction does not require any documentation to be claimed and it is accessible to taxpayers in most circumstances.

If you are filing Married Filing Separately (MFS) however, there is one further consideration. Both you and your spouse need to choose either the standard deduction or itemized deduction. To put it another way, if one of you opt to itemize deductions, both of you must itemize deductions, and vice versa. 

[krgy8888]

Hi Andrew

Thank you for responding, of which I was aware.  I'm a bit more concerned how this will look on next year's return (having taken $18k from gov't), when I am single.  Will I just have to return all that?  I just don't get it; I've never been faced with such an amount that I didn't EARN.  Thanks for helping, desperate in CT, KrGY8888

[Andrew_W]

Each year's tax return is treated on its own, like a new chapter in a book. The money you get back as a refund from one year does not affect what you owe or get back in a future year. It's a one-time thing.

If you see a large refund but are not sure what is driving it (tax withholdings, credits, etc.), I recommend verifying all entries made while preparing the return to rule out any data entry errors.