topic My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks in Deductions & credits

My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks

maryloueflowers2 — Wed, 24 Mar 2021 23:31:36 GMT

Re: My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks

Davidaimee — Wed, 24 Mar 2021 23:44:36 GMT

Did you get an answer? I have been screwing around with turbo tax for 3 days trying to get an answer

Re: My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks

Anonymous — Wed, 24 Mar 2021 23:53:54 GMT

More than likely the software is showing you the total of everything that you entered, without regard to items that have limitations. You likely have deductions that exceed the $10,000 in "SALT" limitations (probably state income and/or property taxes). When those are reduced to $10,000 and then your other items are added back in, it probably adds back up to a number less than the standard deduction.

If you have entries that add up to more than $10,000 for property taxes, or state income taxes (or the two combined) this is likely the issue.

Re: My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks

Davidaimee — Thu, 25 Mar 2021 00:02:50 GMT

No, my SALT is only about $9000. Thanks

Re: My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks

macuser_22 — Thu, 25 Mar 2021 00:07:06 GMT

For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). 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.

2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

Re: My itemized deductions = $20,659 The standard deduction = $15,400 So why does your program say the std ded is better? Please detail the answer. Thanks

VolvoGirl — Thu, 25 Mar 2021 00:08:23 GMT

What Standard Deduction is 15,400? Do you mean 12,400?

For 2020 the standard deduction amounts are:

Single 12,400 + 1,650 for 65 and over or blind (14,050)

HOH 18,650 + 1,650 for 65 and over or blind

Joint 24,800 + 1,300 for each 65 and over or blind

Married filing Separate 12,400 + 1,300 for 65 and over or blind

How much are your Itemized Deductions? The questions I've seen turn out that the Standard Deduction + the extra 300 for charity is more than your Itemized Deductions . Check 1040 line 10b.