topic Standard vs. Itemized Deduction in Deductions & credits

Standard vs. Itemized Deduction

092238 — Tue, 09 Mar 2021 21:37:49 GMT

1. There was no deduction to income after I finished the deduction section. Only a screen that recognized that and said something like "We'll be fixing that." But it's been 2 weeks and the only thing that's changed is that screen has disappeared.

2. In any case, I cannot understand why Turbo Tax calculates the Standard Deduction ($27,400) rather than my itemized deductions ($45,341) as best for me.

Please advise.

Mark Lore

Re: Standard vs. Itemized Deduction

LenaH — Tue, 09 Mar 2021 21:49:25 GMT

If your itemized deductions are greater than the Standard Deduction, TurboTax should automatically use the itemized deductions on your Schedule A. Some deductions are subject to limitations, so this could have changed what was the most beneficial deduction in your tax situation. However, if TurboTax is not choosing the greater of the two deductions, you can force the program to use your Itemized Deductions.

To force the use of Itemized Deductions, please follow the steps below:

Open your return.
Click on Tax Tools on the left hand side.
Click on Tools.
Click Topic Search.
Search "itemized deductions, choosing"
Click on Change my deduction.
Choose Itemized Deductions under Which deduction do you want to take this year?

Re: Standard vs. Itemized Deduction

092238 — Tue, 09 Mar 2021 22:07:58 GMT

Thanks, I'll give it a try. Do you have any insight as to why the Federal Tax owed doesn't change after deductions are counted in?

Re: Standard vs. Itemized Deduction

DawnC — Tue, 09 Mar 2021 23:44:03 GMT

They may already have been subtracted from your adjusted gross income. Not everything on the deductions and credits summary page is included on Schedule A. Itemized deductions can be limited amounts of each category. For example, only medical expenses in excess of 7.5% of your AGI are included in the medical expenses deduction. State and local taxes paid are limited to 10K and there are other limitations. What is the amount taken as a deduction of Line #12 of your Form 1040? Then take a look at your Schedule A, Line 17. Is the higher amount included and if not, have you manually changed the deduction?

Also, are you possibly affected by the Alternative Minimum Tax? The AMT is a parallel tax system that operates in the shadow of the regular tax, expanding the amount of income that is taxed by adding items that are tax-free and disallowing many deductions under the regular tax system.

Re: Standard vs. Itemized Deduction

sweattb — Wed, 10 Mar 2021 17:20:18 GMT

I'm sorry for asking on this thread, but I can't figure out where to post a question.

When filling out my medical deductions, I added the total deductions and it came to $18,760. but when I go to the Turbo tax page which shows the medical deductions, it shows $39,035. I put TT explanation on how this is calculated below, but it seems like it is a lot and I don't want to get audited.

Thank you for your help

Medical Expense Deduction

How did you calculate my $39035 of total medical expenses?

Your $39035 of total medical expenses comes from adding up your $ of prescription medication, your $ of medical insurance premiums, your $ of Medicare premiums, your $ of eye care expenses, your $ of x-ray and lab work fees, your $ of medical professional fees, your $ of medical equipment and supplies expenses, and your $18792 of net premiums from 1095-A after adjustments.

How did you calculate my $18792 of net premiums from 1095-A after adjustments?

Re: Standard vs. Itemized Deduction

JeffreyR77 — Wed, 10 Mar 2021 19:19:31 GMT

The amount of net premiums from Form 1095-A after adjustments should be the amount from Form 1095-A Part III Line 33 Col A minus Col C OR Part III Col A minus Col C plus the amount of excess advance premium tax credit from Form 8962 Part III, Line 29.

If your income for the year made you ineligible for any advance premium tax credit, you receive full credit for the amount of premiums on Line 33 Col A of Form 1095-A as a medical itemized deduction (subject to the 7.5% of AGI limitation).

Re: Standard vs. Itemized Deduction

sweattb — Wed, 10 Mar 2021 22:04:28 GMT

Thanks