topic Re: Schedule A in Deductions & credits

Schedule A

Dennis422 — Wed, 07 Apr 2021 21:13:58 GMT

My Schedule A deductions are larger than the Standard Deduction, but TurboTax is selecting the Standard Deduction. Why??

Re: Schedule A

VolvoGirl — Wed, 07 Apr 2021 21:16:00 GMT

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. And some deductions are limited.

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

Re: Schedule A

VolvoGirl — Wed, 07 Apr 2021 21:20:15 GMT

For the Desktop program

If it's giving you the Standard Deduction and not showing you Schedule A you can check it 4 ways.

1 You can switch to Forms Mode and open A from the top of the left column. Click on Open Form and pick schedule A out of the US list on the right side.

2 The easiest way is to go up to Show Topic List on the top bar and scroll down the list to

Standard Deduction vs Itemized Deductions

That takes you directly to the

The Standard [or Itemized] Deduction is Right for You screen

3 You can check the actual amount of itemized deductions by going up to Search and type in

itemized deductions, choosing

Then click on Jump to itemized deductions

Click on "Change my deduction.

4 OR go up to Federal (Personal for H&B)

Deductions and Credits

Click on Done with Deductions at bottom

Continue on though 3 screens and you will get to the Standard Deduction is right for You screen

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.

Re: Schedule A

Dennis422 — Thu, 08 Apr 2021 14:10:19 GMT

@VolvoGirl Thanks for the prompt and detailed responses. I have isolated the issue -- the software is not allowing me to deduct all of my mortgage interest. It is excluding the interest on my main home (we also have a vacation home). Total value of the homes < $750k. Total interest expense for 2020 is ~$15k. We refinanced our vacation home in 2020 so we received two Forms 1098 for that home. As such, I initially listed three separate 1098s on the return. Yesterday, I read a note on TurboTax that instructed me to combine the original and refi'd 1098s. I did that, but TT still does not allow deduction of our main home interest.

Thoughts??

Re: Schedule A

Cynthiad66 — Thu, 08 Apr 2021 17:29:34 GMT

First, there is a known problem with Home Mortgage Deduction. TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades. We have not been given an expected date for the fix yet. Please check back often to see if you can file your return.

If you have more than one 1098 form, I will recommend you to combine all 1098 forms and enter as one. I am attaching a TurboTax link for the instructions. Click here:

Multiple Form 1098s

For tax years prior to 2018, your mortgage interest deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status). Beginning in 2018, this limit is lowered to $750,000. For more information about the mortgage interest deductions, click here: Mortgage Interest deduction Per @LinaJ2020

In late December of 2017, Congress passed the largest tax reform bill in over 30 years. Almost every individual taxpayer will be affected by these changes, as will many businesses. Most homeowners won't be affected by the lower cap on mortgage interest, but the conditions to deduct interest on home equity loans and lines of credit are more restrictive in 2018.