topic New limit on itemized deductions for married Jointly in Deductions & credits

New limit on itemized deductions for married Jointly

shelbidog — Tue, 23 Jul 2019 17:55:35 GMT

If itemized deductions are limited, should we take standard deduction?

Re: New limit on itemized deductions for married Jointly

VolvoGirl — Tue, 23 Jul 2019 17:58:10 GMT

Take whichever is more. Turbo Tax will give you the higher amount. Turbo Tax starts out giving you the Standard Deduction until your Deductions are more.

This year the Standard Deduction will be doubling so many people will be switching to the Standard Deduction. And there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

And you can only deduct Medical that’s over 7.5% of your AGI. Also the deduction for job expenses have been suspended.

FAQ on 2018 changes

https://ttlc.intuit.com/community/tax-reform/help/how-will-tax-reform-affect-my-federal-tax-return/00/27627

For 2018 the standard deduction amounts are:

Single 12,000 + 1,600 for 65 and over or blind

HOH 18,000 + 1,600 for 65 and over or blind

Joint 24,000+ 1,300 for each 65 and over or blind

Married filing Separate 12,000 + 1,300 for 65 and over or blind

If you are 65 or older you get an extra 1,300 each

24,000+1,300+1,300= 26,600

Re: New limit on itemized deductions for married Jointly

xmasbaby0 — Tue, 23 Jul 2019 17:59:12 GMT

Who said itemized deductions are limited if you file a joint return? Perhaps you just do not understand the new standard deduction amounts and how it works.

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.

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.

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

Re: New limit on itemized deductions for married Jointly

DoninGA — Tue, 23 Jul 2019 17:59:15 GMT

Using TurboTax the Standard Deduction is automatically used if the total of the itemized deductions are less than the standard deduction.

Entering itemized deductions on a personal tax return Schedule A is not required.