topic Re: Personal exemptions in Get your taxes done using TurboTax

Personal exemptions

Shiney2 — Mon, 02 Sep 2019 16:48:52 GMT

Re TY 2018, although I have 1 personal exemption on 1040 Wrksht line a, the Standard Deduction Worksheet does not show the amount, i.e. $1300. The Standard Deduction Wrksht line 3c is blank! Yet the personal exemption is included in the total of standard deduction + personal exemption, i.e. $25300, in 1040 line 8. Why does TT not calculate and enter the exemption on the Standard Deduction Worksheet? This occurs in TT 2018 and has been the case for several years running.

Re: Personal exemptions

xmasbaby0 — Mon, 02 Sep 2019 16:53:18 GMT

For 2018 onward there are no personal exemptions. Your standard deduction was increased.

Your standard deduction lowers your taxable income. It is not a refund

2018 Standard Deductions:

Single $12,000 (+ $1600 65 or older)

Married Filing Separately $12,000 (+ $1300 65 or older)

Married Filing Jointly $24,000 (+ $1300 each spouse 65 or older)

Head of Household $18,000 (+ $1600 65 or older)

Look at line 8 of your Form 1040 to see your standard or itemized deductions.

STANDARD DEDUCTION

Many taxpayers are surprised this year because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

Re: Personal exemptions

Shiney2 — Mon, 02 Sep 2019 17:09:14 GMT

Thank you.

I guess I shouldn't use the word "personal exemptions".

The bottom line is that 1040 line 8 titled "Standard Deduction" is $25,300.

The Standard Deduction Wrksht has $24,000 in line 2. Line 3 has no entry. And, it does not permit me to make an entry. And, this is to be the amount carried to 1040 line 8, i.e. 0.

On 1040 Wrksht I checked one box in line a and the entry is "1".

Makes no sense.

On 1040 line 8 it reads $25300. (What do you call the $1300 - used to be a personal exemption, I think?. So, I still get it and it, but it does not appear anywhere!?)

Re: Personal exemptions

Texas Roger — Mon, 02 Sep 2019 18:49:44 GMT

The standard deduction worksheet is only used if someone can claim you or your spouse as a dependent. Otherwise that worksheet is not used and the amounts shown on it are not used.

The amount on line 8 of form 1040 is correct at $25,300 if you or your spouse is age 65 or over since $1300 is added to the $24,000 standard deduction for married filing jointly for age 65 or over or blindness of one spouse.

Re: Personal exemptions

VolvoGirl — Mon, 02 Sep 2019 19:26:24 GMT

FYI - for 2017 the personal exemption you got for each person on your return was $4,050. It has been suspended for 2018 and instead you get a double Standard Deduction. But the amount for 2018 would be $4,150. You can't claim someone as a dependent if they make over $4,150 for the year unless they are your child under 19 or under 24 and a full time student.

FAQ on 2018 changes https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

Deductions that have been suspended for 2018
https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform