topic Re: Itemized Deductions in Deductions & credits

Itemized Deductions

chintan85 — Mon, 24 Feb 2020 16:58:13 GMT

Why is the program defaulting me to a standardized deduction even if my itemized deductions are higher. How can i change that?

Chintan

Re: Itemized Deductions

DoninGA — Mon, 24 Feb 2020 17:01:16 GMT

TurboTax will give you either the Standard Deduction or Itemized Deduction, whichever is higher.

Is your Itemized Deduction really greater than the Standard Deduction.

Click on Federal on the left side of the program screen.

Click on Deductions and Credits at the top of the program screen.

Scroll down to the bottom of the page and click on Wrap up tax breaks

The following screen shows the Standard and Itemized Deductions. Which is greater?

Re: Itemized Deductions

chintan85 — Mon, 24 Feb 2020 17:48:00 GMT

@DoninGA thanks for your feedback. I was able to follow through Deductions and Credit but was not able to go to the last step. I am using the software on my computer. Yes my itemized are higher ~55K vs. standard $24,400. I looked at it further, its capping my home interest deduction and I have answered all the questions correctly. Its a loan secured by my residence, not a HELOC etc.

Re: Itemized Deductions

DoninGA — Mon, 24 Feb 2020 17:52:56 GMT

@chintan85 wrote:

@DoninGA thanks for your feedback. I was able to follow through Deductions and Credit but was not able to go to the last step. I am using the software on my computer. Yes my itemized are higher ~55K vs. standard $24,400. I looked at it further, its capping my home interest deduction and I have answered all the questions correctly. Its a loan secured by my residence, not a HELOC etc.

Okay...Your post is showing you using the Deluxe online edition.

Anyway, go back through the Mortgage Interest section and review the questions and answers. Your interest should not be capped if your total mortgage debt is $750,000 or less. Mortgages and refinances taken out before December 16, 2017 are grandfathered in at the $1 million debt limit.

Re: Itemized Deductions

chintan85 — Mon, 24 Feb 2020 18:04:13 GMT

@DoninGA

Thanks, I have reviewed and deleted and entered the information again, but does not more my refund or amount I owe for federal purposes? Its just capping me at standard, is this a glitch with the system... How can i fix this?

Re: Itemized Deductions

DoninGA — Mon, 24 Feb 2020 18:12:09 GMT

@chintan85 wrote:

@DoninGA

Thanks, I have reviewed and deleted and entered the information again, but does not more my refund or amount I owe for federal purposes? Its just capping me at standard, is this a glitch with the system... How can i fix this?

Look at the Schedule A. Click on Forms in the upper right of the desktop program screen.

Is the amount you entered for Mortgage Interest shown on the Schedule A Line 8a and on Line 10?

Re: Itemized Deductions

DoninGA — Mon, 24 Feb 2020 18:16:23 GMT

To change from Standard to Itemized -

Enter itemized deductions, choosing in the Search box located in the upper right of the program screen. Click on Jump to itemized deductions, choosing

Click on the box labeled Change my deduction

Re: Itemized Deductions

chintan85 — Mon, 24 Feb 2020 18:41:11 GMT

@DoninGA

Thank you for your help, in the forms view I noted there was a check box limiting my mortgage interest deduction. I unchecked that and everything seems to be working fine. Appreciate all your help on this.

Re: Itemized Deductions

hliu_2020 — Wed, 15 Apr 2020 20:20:05 GMT

Hi, I ran into the same situation and would like to know which form were you able to check off the limitation for mortgage interest deduction? Thanks.

Re: Itemized Deductions

DoninGA — Wed, 15 Apr 2020 20:21:58 GMT

@hliu_2020 wrote:

Hi, I ran into the same situation and would like to know which form were you able to check off the limitation for mortgage interest deduction? Thanks.

For desktop versions:

In Forms view, locate and click on Tax & Int Wks on the left from the forms list
On the form, scroll to Mortgage Interest Limited Smart Worksheet
Click on NO to the right of the question, Does your mortgage interest need to be limited

For online versions:

Under Deductions & Credits, expand the menu for Your Home
Click Start/Revisit next to Mortgage Interest and Refinancing (Form 1098)
Click through until you get to a screen that says Do any of these situations apply to you? Mark Yes.
On the next screen, take out the zero.
Click back and choose No.