This is an education question..
My understanding is, while filling in federal section and towards the end TT calculates both the Standard and Itemized deduction and recommends the one which is higher.
My questions is, does the fed makes that recommendation after one completes the State filling because it does not know what the total state tax liability for itemized deduction until the state portion is completed ? Because in my case, I had very little amount withheld for the state taxes for my pension payout 1099, but because I sold stock with high capital gains I owe significantly more in state taxes at the time of the filling. For the fed section to accurately calculate the exact deduction for Standard or Itemized, it would need to know what is my total tax liability is ?
Thanks,
