Deductions & credits

Depending on what state you live in, you may be able to take the standard deduction for your Federal tax return and itemize deductions for your state taxes. Some states let you file differently and some states mandate that you take the same deduction that you took on your federal tax return. 

Several states allow you to itemize deductions on your state return even if you claimed the standard deduction on your federal return to maximize your tax benefits. States allowing this include Alabama, Arizona, Arkansas, California, Delaware, Hawaii, Idaho, Iowa, Kentucky, Minnesota, Mississippi, Montana, New York, North Carolina, Oregon, and Wisconsin. You can also Google if your specific state allows this to verify.

You will enter all of your itemized deductions on your federal return input screen first and TurboTax will transfer them to your state return.   Then select to take the standard deduction on your federal return.  You can use the instructions below if you need to change your deductions that TurboTax chose for you. 

When you prepare your state return you will be given the option to itemize if your state allows it.   But the itemized deductions still need to be entered on the federal return before preparing your state return.  

If you are using TurboTax Online you can manually change your deduction as follows:

1. In your left panel scroll down to "Tax Tools"
2. Click on "Tools"
3. Click on the box "Topic Search"
4. In the box that says "I'm looking for:" type in "Standard Deduction"
5. This will take you to the page "Based on what you told us..."
6. Here you can change your deduction by clicking the box "Change my Deduction"

If you are using TurboTax Desktop, you can manually change your deduction as follows::

1. Go to "Federal Taxes" tab in the gray bar at the top of your screen
2. Select the "Deductions & Credits" tab (under Federal Taxes in the gray bar at the top of your screen
3. Click on "I'll Choose What to Work On"
4. Select "Continue" at the bottom of the page
5. Select "Continue" on the next page that says "Let's Check Your Deductions and Credits"
6. Select "Continue" on the next page that says "Here Are Your 2024 Deductions & Credits"
7. The following page will give you the opportunity to change your deduction by clicking on the box "Change my deduction"

Click here for What's my standard deduction for 2025?

Click here for Standard Deduction vs. Itemized Deductions: Which Is Better?

Click here for additional information on changing your deduction.

Please return to Community if you have any additional information or questions and we would be happy to help.