Deductions & credits

Interesting...I hadn't thought of a situation where the person's income was so low (at least, what was entered so far)  such that they didn't have a tax liability when the Std Ded was used...even if itemized was greater.

 

Say a single person had 12,000 of income entered, and 20,000 of itemized deductions.   IS the software smart enough to go ahead and use the Std Ded, and not the Itemized Ded?   Why?  Because Itemized Ded doesn't help them  (Can't have a negative AGI), AND if they do get a state refund for whatever wages they did have, if they used Itemized, the state refund potentially becomes income for the next year's tax return.

 

But I haven't thought it all the way thru yet.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*