DEDUCTIONS

kchapman1 — Sat, 28 Mar 2020 02:51:39 GMT

WHEN I ADD MY MORTGAGE INTEREST AND PROPERTY TAXES AND CHARITABLE CONTRIBUTIONS, THE TOTAL IS MORE THAN THE STANDARD DEDUCTION. BUT I AM RECOMMENDED TO TAKE THE STANDARD DEDUCTION. CAN YOU EXPLAIN WHY?

THANK YOU

Re: DEDUCTIONS

KrisD15 — Sat, 28 Mar 2020 03:23:54 GMT

I would need to see your return, but I suggest you click Deductions & Credits, scroll down and click Wrap up all tax breaks.

On the screen that tells you if Itemizing or the Standard deduction is best, click the "Show me the breakdown of my itemized deductions"

Re: DEDUCTIONS

xmasbaby0 — Sat, 28 Mar 2020 03:50:40 GMT

Are you making the common mistake of just adding up all the amounts for your itemized deductions without considering the caps and thresholds that must be met?

STANDARD DEDUCTION

Many taxpayers are surprised 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 since the new tax laws went into effect beginning with 2018 returns.

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.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount

topic DEDUCTIONS in Deductions & credits

DEDUCTIONS

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