Initially, TT Premier gave me the Standard Deduction, the only change made after getting the
standard deduction was a bank interest earned amount.
Now after recalculating, it provided me with itemized deductions and almost doubled the refund.
Here's what it looks like now, the itemized deduction amount is less than the standard deduction by $1,338.
Why is it still wanting me to take the itemized deduction when the standard deduction is higher?
The tax return is complete and I have checked every input to the originally issued documents and there are no issues. Turbo Tax says there are no errors or changes required. The only other consideration is that the credit amounts applied would (or may) affect the overall computation for taking the Itemized Deduction over the Standard Deduction, is that the reason?? After further review, it was noticed that the Alternative Minimum Tax (AMT) credit for prior years, was significantly increased when taking the Itemized Deductions (even though the Standard Deduction is lower than the Itemized Deductions (the AMT for Standard deductions is less than in the AMT for Itemized Deduction).
Bottomline? The AMT may be what causes Turbo Tax to recommend taking Itemized Deduction.
