topic Re: Itemizing Deductions in Deductions & credits

Itemizing Deductions

Mesh2 — Sat, 06 Mar 2021 17:37:23 GMT

My deductions in Turbo Tax Deluxe show that itemizing would be better for federal taxes (and is also better for my state taxes). When I click on change, it goes back to the same screen but doesn’t change from standard deduction. I also checked the summary page and it is still showing the standard deduction also.

Re: Itemizing Deductions

LenaH — Sun, 07 Mar 2021 00:04:53 GMT

If your itemized deductions are greater than the Standard Deduction, TurboTax will 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.

If you need to review your deductions or 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: Itemizing Deductions

SharonLouise — Tue, 23 Mar 2021 23:05:22 GMT

Here's the glitch, and I've spent all afternoon trying to get it fixed including two plus hours with TurboTax reps. My federal itemized deductions are $12,342. I want to use itemized deductions and the screen shows that I am. However somewhere between that screen and the final return it has changed to the standard deduction. This mostly likely was caused because the standard deduction is $12,400 and the charitable contribution allowed in addition to that is $300 making the total deduction $12,700 instead of $12,432. Understandable EXCEPT that in Oklahoma I have to use the same method as the federal return and the Oklahoma standard deduction is $6,350. So instead of getting to take a $12,342 deduction on the Oklahoma return I'm only allowed the $6,350. The Turbotax reps I've spoken with assure me that itemized deductions are being taken but when I downloaded the federal return (after paying of course) there is no Schedule A and the standard deduction is showing on the return. To add insult to injury the last rep I spoke with tried to transfer me to a tax advice consultant and I was disconnected during that process.

Re: Itemizing Deductions

BillM223 — Fri, 26 Mar 2021 21:33:11 GMT

@SharonLouise

After you finished your federal return and Review (so the $300 contribution would be entered on the 1040), did you go back to try to set the flag to use Itemized Deductions? (See this TurboTax Help Article)?

Yes, this will increase your federal tax slightly, but, with luck, will let Oklahoma use utilize deductions too so that the net result will be a win for you.

Make sense?

Re: Itemizing Deductions

SharonLouise — Fri, 26 Mar 2021 22:45:36 GMT

Yes, tried that over and over again. Screen still shows that I'm taking itemized deductions but the return takes the standard deduction. Per my last conversation with Turbotax I'm told that an investigation has been started because there are other people who are having the same issue. Perhaps you could let me know how the investigation is going. I would love to get this return filed and get my refund processed.

Re: Itemizing Deductions

DawnC — Fri, 26 Mar 2021 23:39:12 GMT

I do see an investigation regarding not being able to use itemized deductions. In this case, the itemized deductions already exceed the standard deduction. This is only slightly different from your situation. It also states they are waiting on a diagnostic file to further investigate. Is it possible for you to provide a token number (diagnostic file) for your return here and I can get it included with that case that I can see is open? I will leave the instructions below.

Have you tried to remove the $300 charitable contribution that is reported on Line 10b? Or is it even there? I was going to suggest entering a phantom expense of a large amount so that your itemized deductions are much more than the standard to see if you could get it changed that way, and then go back and remove it. But if the open investigation is an issue, that probably won't work. But you can certainly try it while we work on this case.

A diagnostic return has any personal identifying information redacted, so your privacy is not in peril. Only a TurboTax agent can access the scrubbed return.

To send a diagnostic return to TurboTax:

Log into your return
Click on Tax Tools
Click on Tools
Click on Share my file with Agent
You will get a message that explains what a diagnostic copy is. Click the OK button

Please indicate the number in a comment below. In the desktop software, use the Online menu at the top, and the next to last option is Send Tax File to Agent. Thank you!

@SharonLouise

Re: Itemizing Deductions

SharonLouise — Sat, 27 Mar 2021 15:35:58 GMT

Hello Dawn,

Thanks for getting back with me. There are a few concerns that perhaps you could address. Can you tell me how long these open investigations take? It's frustrating that I have a nice refund due but can't claim it until Turbotax resolves the situation. Also I've already entered all the information and paid for the return. Would the diagnostic file scrub all that?

And yes I've tried to remove the $300, even entered $0 which it won't take. Apparently it's automatically sticking it in there since I've claimed charitable deductions when itemizing.

Re: Itemizing Deductions

JamesG1 — Tue, 30 Mar 2021 15:12:34 GMT

The Charitable Cash Contribution under CARES Act can confuse the software and the itemized deductions / standard deduction. You may want to try these steps to remove the $300 contribution and qualify for itemized deductions.

In TurboTax Online, the screen Charitable Cash Contributions under CARES Act appears as the end of Deductions & Credits. First you have to pass the screen Based on what you told us, the standard deduction is best for you at the end of Deductions & Credits.

But you have to qualify for the standard deduction before the screen appears. So you may want to change the value of one or more itemized deductions to $1 so that you qualify for the standard deduction. Follow these steps:

At the top of the screen, click on Deductions & Credits.
Scroll to the bottom of the page and click on Wrap up tax breaks.
Continue through several screens.
At the screen Based on what you told us, the standard deduction is best for you, click Continue.
At the screen Any Charitable Cash Contributions? delete the dollar amount or enter $0.
Continue through Federal Review to make sure that things look correct.
Then restore your itemized deductions dollar amounts.

Re: Itemizing Deductions

SharonLouise — Fri, 02 Apr 2021 14:22:35 GMT

Hello JamesG1,

This morning I've spent yet more time on the itemized deductions dilemma. The only thing I can determine at this time is that the program software will not allow the CARES Act contributions to be changed to 0 or to be deleted. Once again, going through each of your suggestions, changing the value of an itemized deduction, qualifying for standard deduction, trying to delete CARES Act contributions and/or changing the amount to 0 (I even tried changing it to 1) which are all unacceptable to the program, then going back and restoring the correct itemized deduction, whereupon the screen determines itemized deductions are best for me, until "completecheck" process is done and deductions are changed back to standard. JamesG1, I understood there was an investigation opened on this issue. Where does that investigation stand? Shouldn't TurboTax be trying all these suggestions and finding the successful solution?

Re: Itemizing Deductions

JamesG1 — Tue, 06 Apr 2021 16:13:36 GMT

@SharonLouise

I reviewed the investigation and I may have been able to recreate your issue in TurboTax Online Deluxe. The steps that I followed are these:

Within itemized deductions, change cash charitable contributions to $1 to make sure that the return uses the standard deduction.
At the screen Charitable Contributions under CARES Act, delete the $300 charitable contribution (not change to $0).
Run Federal Review and pass.
Within itemized deductions, restore cash charitable contributions to their correct amount.
At the screen Based on what you told us, TT gives me standard deduction. I can change it to itemized using the Change my deduction button.
However, the Based on what you told us screen does not reflect that I made the change. And it does not reflect the change. That is what the investigation said happens.
The reason that it insists on the standard deduction can be found on the next screen. The Charitable Contributions under CARES Act is displayed using the amount of the cash donation that I had just entered.
However, at this screen, I deleted the entry (not change to $0).
I am able to run Federal Review and pass.
The tax return itemizes deductions in the amount of $12,342 with no charitable contribution on line 10b of the 1040. Schedule A reflects the full cash charitable contribution.

Re: Itemizing Deductions

SharonLouise — Wed, 07 Apr 2021 00:13:20 GMT

Hello JamesG1 and thank you for the suggestions. I am going to be out of pocket for a little over a week so I won't be able to try your suggestions until after that. Is there some way at that time that I can try your suggestions while we are on a phone call with each other? It seems like we'd have better communication that way.

Re: Itemizing Deductions

JamesG1 — Wed, 07 Apr 2021 15:28:20 GMT

You should be able to reach me here. Best wishes to you.

Re: Itemizing Deductions

SharonLouise — Wed, 28 Apr 2021 16:58:54 GMT

Hello James G1,

Is there a way I can contact you for a phone call while I try the suggestions you've posted? It's been a long road and it would be wonderful to get this tax return finished! Than

Re: Itemizing Deductions

SharonLouise — Thu, 29 Apr 2021 16:35:15 GMT

Hello JamesG1,

If you're available for assistance I would appreciate having you walk through your suggestions with me as I enter them. Even better if you could take this tax return and make those entries on your end. Is that possible? It's frustrating to keep trying things with this program that don't work. Please help.

Re: Itemizing Deductions

KathrynG3 — Sun, 02 May 2021 19:57:32 GMT

The best thing to do is to call in to TurboTax again at: (800) 446 - 8848. For more information about ways to contact TurboTax, see: What is the TurboTax phone number?

Assuming you are using TurboTax Online, I recommend following the steps from excellent TurboTax Expert @JamesG1 after clearing your cache and cookies and checking that your device meets minimum system requirements before calling into TurboTax. Be sure to close the program and the browser window. Re-open using a Chrome incognito window.

@SharonLouise

Re: Itemizing Deductions

SharonLouise — Wed, 05 May 2021 18:32:10 GMT

Hello JamesG1 and KathrynG3,

This morning I went through the suggestions you made and when I downloaded the federal tax return it still shows using the standard deduction even though during the process of preparing the tax return the program tells me it's taking itemized deductions. I can try making a phone call again but on an earlier call that I made I was assured that itemized deductions were being taken when in fact the downloaded return showed that the standard deduction was taken. I just don't want to go through that same scenario again. Maybe we're at the point where the program just won't work in this situation and I'll need to try filing the return with a different program. How do we go about getting a refund for the filing fee that has already been paid? Thanks!

Re: Itemizing Deductions

DaveF1006 — Wed, 05 May 2021 22:46:06 GMT

To request a refund, please use this link to Contact Us for a phone number to to speak to a Product Support Specialist.

Re: Itemizing Deductions

SharonLouise — Tue, 11 May 2021 22:46:59 GMT

So I called to request a refund and was messaged a link which needed an order# that I could not locate. By the way did you know that the online version does NOT have an unconditional 60-day money back guarantee? Anyway, I called the customer service number and reiterated all that was happening and was eventually transferred to Cory who wanted to go through the issue again. After having already spent countless hours trying to fix the issue and letting him know that an investigation had been started, I was not extremely happy to go through everything again, but we did. He was very patient and he genuinely seemed to understand the glitch and wanted to see me through until it was fixed which amounted to just over 3 hours on the phone. With the help of Agent Support he was able to determine that the online version of TurboTax would NOT allow me to lock in itemized deductions in my situation, whereas switching to the CD/desktop version did have that option when state taxes were adversely affected. He was able to save my data, switch me to the desktop version, and share my screen until all the steps were finished. There is a screen on the desktop version which specifically addresses the issue and presents options. How I wish that solution would have been discovered way back in the beginning! Thank you Cory, you were indeed a blessing!!!