topic standard vs Itemized in Deductions & credits

standard vs Itemized

Don Grymes — Mon, 01 Feb 2021 18:44:42 GMT

If I claim Standard Deductions do I still need to report qualified itemized deductions?

Re: standard vs Itemized

RayW7 — Mon, 01 Feb 2021 19:01:41 GMT

No you do not, however I would enter them to make sure you are receiving the maximum deduction.

Also, Those who take the standard deduction usually are not able to take a tax deduction for their donations, however, under the CARES Act, there is the addition of a new charitable deduction up to $300 on your 2020 taxes for your cash donations made to a 501(c)(3) organization even if you don’t itemize your deductions. This will be something for taxpayers to keep in mind since close to 90% of taxpayers now claim the standard deduction instead of itemizing and are no longer able to deduct charitable contributions under tax reform.

Tax season pressure may tempt you to accept the standard tax deduction, rather than exploring the potential benefit of itemizing your deductions. To figure out whether itemizing would be profitable for you, you need to determine whether the allowable expenses you paid during the year—for things like home mortgage interest and property taxes, state income or sales taxes, medical expenses, charitable donations, etc.—exceed the standard deduction for your filing status.

Here are the basic numbers to beat for 2020 returns:

Standard deduction for single taxpayers—$12,400
Standard deduction for married taxpayers filing a joint return—$24,800
Standard deduction for head of household taxpayers—$18,650

Those are the numbers for most of us, but some people get even higher standard deductions. If you're 65 or older or blind, you get to increase your standard tax deduction by the amount listed below.

Re: standard vs Itemized

MamaDeerinSnow — Sun, 07 Feb 2021 22:20:33 GMT

In review TT is telling me that I don't qualify for the $300 because we take the standard deduction, even though there was a place to enter it and we did.

But then TT is also warning us about the imminent need to take required minimum withdrawals at age 701/2, even though elsewhere it notes the change to age 72.

Any thoughts? Seems like related failures to take into account the CARES act.

Re: standard vs Itemized

DaveF1006 — Sun, 07 Feb 2021 22:50:44 GMT

It depends. You do qualify for the $300 standard deduction and the RMD is not required this year because of the Cares Act. let's address one at a time.

Where did you enter the charitable contribution? If you entered this under deductions and credits>charitable contributions, this isn't the section where this is entered. If you enter here, delete the entry you made.
Instead select deductions and credits and go through each screen. When you are past the screen where it says the Standard Deduction is Right for you, continue on. The very last screen should look like the screenshot I will include below. This is where you enter the amount up to $300.
Regarding the RMD, the 8915-E form hasn't been finalized yet from the IRS. Please sign-up here and we will email you once the form is live.
Here is the screenshot that should appear after going through the sections in deductions and credits. This is where you enter the information.

Re: standard vs Itemized

izzy8nala — Wed, 10 Mar 2021 19:39:20 GMT

Isn't there a $600 charitable deduction for married filling jointly and itemizing?

Re: standard vs Itemized

JotikaT2 — Wed, 10 Mar 2021 19:54:33 GMT

You can take a $300 adjustment to income for cash donations if you take the standard deduction in 2020.

If you are itemizing, your charitable contributions would be reported on Schedule A as an itemized deduction. There would not be an additional $600 deduction.

Cash charitable donations information

Re: standard vs Itemized

SweetieJean — Wed, 10 Mar 2021 21:13:02 GMT

The $600 for charitable donation for Married Filing Joint becomes effective for 2021 returns (filed in 2022).