topic Standard deduction is $18,350 for HOH. My itemized is $18,991. Should I go for Standard Deduction to avoid paying taxes on $1000 for stand refund next year? in Deductions & credits

Standard deduction is $18,350 for HOH. My itemized is $18,991. Should I go for Standard Deduction to avoid paying taxes on $1000 for stand refund next year?

jlb504 — Sat, 28 Mar 2020 20:41:02 GMT

Re: Standard deduction is $18,350 for HOH. My itemized is $18,991. Should I go for Standard Deduc...

DanaB27 — Sat, 28 Mar 2020 20:59:34 GMT

You can still itemize because your state refund will only be taxable if all three of the following are true:

You itemized deductions last year, instead of taking the standard deduction
You claimed state and local income taxes (not general sales taxes)
Claiming the deduction helped you increase your federal refund or lower your tax bill

Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill. Next year you will answer a few simple questions about the refund, and TurboTax will calculate the taxable amount for you.

Re: Standard deduction is $18,350 for HOH. My itemized is $18,991. Should I go for Standard Deduction to avoid paying taxes on $1000 for stand refund next year?

NCperson — Sat, 28 Mar 2020 21:25:04 GMT

it may be that the $1000 is not taxable next year.

let's say your State and local taxes were $13,000. But of course, SALT is limited to $10,000 in deductions. So if you receive $1000 refund in state taxes, it's not income in 2020 because it was part of the $3,000 that you could't deduct in 2019!