Not sure if this will help you or others, but I wanted to itemize my Oregon State Taxes and take the standard deduction on federal, but it wasn't giving me the option to switch either federal or state following the directions. TurboTax Deluxe, Desktop version.
The "trick" that solved it for me was unchecking "Check this box to take the standard deduction even if less than itemized deductions" checkbox for federal Info Worksheet. I highly doubt I would have selected this as an option on a prompt, but I can't remember all the prompts. I had to remove my state return and redo it.
Steps:
- Click on Federal Taxes tab
- Tools -> My Tax Data
- Info Wks, Standard ded regardless
- Go To Form
- uncheck the box
- Close Form
- File -> Remove State Return
- Redo your state return
Take note of your refunds. Mine went up a couple hundred dollars since my OR state itemized around $9k vs $5.2 OR standard deduction...
TurboTax should recalculate your state taxes when this checkbox is changed, but it did not, even after clicking through all the prompts in State Taxes tab.
Scary part is that it doesn't even alert you that you would get a better refund by itemizing. It should certainly double check that you meant to take "the standard deduction regardless". Before I figured out my problem. I changed federal to itemized (to try and get my state to itemize, which worked) and I can hardly believe that they also didn't warn or alert me that my decision to itemize for federal was worse than taking the standard deduction. What does the "Smart Check" or "Let's check it over" even check for??? Put me on the list of folks changing to different tax software next year...
Also hint for Oregon folks who paid Metro Supportive House Personal Income Tax (SHS) last year (i.e. paid in 2023 for 2022 or 2021 if you forgot this new tax like most folks). You can deduct it from State Income tax as it is a Local Tax. But don't try to enter it in the State Taxes tab. You have to go back to Federal Taxes and put it in there:
- Federal - Other Income Taxes
- Other Income Taxes Paid in 2023
- ...local income taxes paid in 2023 (bottom one)
Should see it on Schedule OR-A: Line 5. State and local income taxes.
This also applies to Multnomah County Preschool For All Personal Income Tax.
I am not a tax professional and this should not be considered tax advice.
