Ray you said "You just simply cannot have more itemized deductions for 8 months of the year than you can for all year." Actually you can have more ALLOWABLE itemized deduction for 8 months of the year than the full calendar year. This is because medical expenses are subject to 7.5% of your AGI. If you have not had much income through the first 8 months of the year and you've had high medical expenses, you will be able to deduct most or all of your high medical expenses based on income for the first 3 periods. HOWEVER if you have a high amount of income in the 4th period which is common with mutual fund dividend distributions, and you re-test your medical expenses against the 7.5% of AGI for the FULL year you will no longer be able to deduct as much of your medical expenses so it ENTIRELY POSSIBLE for your 4th quarter itemized deductions which are allowed to be lower than what they were in the 3rd period. It would be nice if TT would allow us to report our information to the IRS in an accurate manner.
