topic standard deductions in Deductions & credits

standard deductions

Catwal — Fri, 01 May 2020 22:46:31 GMT

I entered itemized deductions totaling $30,000 and when done it says Congratulations you are getting the standard deduction and all the summary of my items are all now zero?? Why is it not reflecting what I itemized?

Re: standard deductions

xmasbaby0 — Fri, 01 May 2020 23:55:24 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

Re: standard deductions

GiseleD — Sat, 02 May 2020 00:01:18 GMT

We cannot see your return here, but it sounds like you were hit by the SALT (State and Local Tax) cap of $10000. The 2017 tax reform limited the state and local tax deduction to $10000. This means that if you paid $7000 in real estate tax, $12000 in state income tax, and $500 in personal property tax (example numbers), you are throttled at $10000. You can only deduct a max of $10000 for these categories. If your other itemized deductions did not push you over the standard deduction for your filing status, then TurboTax defaulted to the highest deduction: the standard deduction.

To see how the numbers worked out, please look at your Schedule A.

Here's how to look at your current-year return forms:

@Catwal

In the left-hand menu bar, click on Tax Tools, then click Tools.
Under Other helpful links, click View Tax Summary.
Your Tax Summary will be displayed. In the left-hand menu bar, you will see a new option: Preview My 1040.

Re: standard deductions

VolvoGirl — Sat, 02 May 2020 00:03:34 GMT

If it's giving you the Standard Deduction and not showing you Schedule A you can check the actual amount of itemized deductions by using by going to
Tax Tools on left
Tools - Topic Search (top left box)
Type in itemized deductions, choosing. It should highlight that in the list, click on GO

Then Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

How to change between the Standard Deduction and Itemized Deductions
https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-itemized-or-vice-versa/00/25831

Re: standard deductions

Catwal — Wed, 06 May 2020 21:29:37 GMT

There is no "topic search" option when I select tools. I tried following the instructions from the link you included and it does not seem to work for me. In the summary page everything I itemized show as 0 and I do not see any options anywhere to select the itemized deductions vs standard deduction.

Re: standard deductions

VolvoGirl — Wed, 06 May 2020 21:37:06 GMT

Are you on a mobile device? I don't know how that works. You may have to log in from a full computer to see everything.

Re: standard deductions

VolvoGirl — Wed, 06 May 2020 21:42:31 GMT

Ok I just went though the steps. Try this

Go to Federal on Left

Then Deductions and Credits at top

Scroll down to Wrap up Tax Breaks

Continue on (about 3 screens)

And get to the Standard Deduction is right for you screen.......

Re: standard deductions

Catwal — Wed, 06 May 2020 21:54:32 GMT

I don't think the SALT cap impacts my case.

I don't know why but I am unable to get to my schedule A. When I go to forms, it is not listed to select. In tools I do not see preview my 1040

Re: standard deductions

MAS1937 — Wed, 09 Feb 2022 15:17:43 GMT

Why do my itemized deductions not show on the summary sheet so I can decide to take either the standard deduction or itemized deductions?

Re: standard deductions

JamesG1 — Wed, 09 Feb 2022 17:28:12 GMT

@MAS1937

Not sure which screen that you are referring to. Please clarify.

By 'summary sheet' do you mean the screen you see at Federal / Deductions & Credits / Your tax breaks? These numbers do not reflect any limitations that Federal form 1040 Schedule A and other forms would impose.

Or do you mean the screen you see at Federal / Deductions & Credits / Your tax breaks / Wrap up tax breaks / Based on what you told us.....? Do you see Change my deduction at the bottom of the screen?

Re: standard deductions

Critter-3 — Wed, 09 Feb 2022 17:38:06 GMT

@MAS1937

When you get to this screen click on this option ... see blue arrow...