I usually have itemized my deductions on my federal return but this year due to a drop in income and adjustments to income, I find my calculated income tax is zero with the standard deduction (though still owe self-employment tax). It seems there is no improvement in itemizing over taking the standard, so why should I enter them. Also my State's income tax system does not feed off of any federal deductions.
Should I go ahead and enter my itemized deductions (medical, state and local taxes, charitable) anyway, just for my own record keeping purposes? If Turbotax uses itemized deductions, will my state tax refund increase my gross income on next year's return without considering my tax liability was zero with either the standard or itemized method?
