topic itemized vs standard deduction in Deductions & credits

itemized vs standard deduction

Linda-B — Mon, 12 Apr 2021 19:43:51 GMT

Confused about standard vs itemized deduction. IRS says standard for Married filing joint is $25,100. Turbo Tax shows $24,800. My Schedule A give me $19,163 for itemized but Turbo Tax fills in $27,400. What's going on? What is right?I

Re: itemized vs standard deduction

NCperson — Mon, 12 Apr 2021 19:57:05 GMT

how old are you and your spouse?

the standard for married is $24,800 PLUS an additional $1300 per person 65 years old or older so that is the $27,400.

$25,100 is the standard for 2021.

Since your itemized is less than your standard, TT is using the standard

it is all correct (assuming you are both 65 years old or older!)

Re: itemized vs standard deduction

BillM223 — Mon, 12 Apr 2021 20:00:54 GMT

TurboTax is correct in each case.

"IRS says standard for Married filing joint is $25,100" - this is for tax year 2021. But we are doing tax year 2020 right now.

"Turbo Tax shows $24,800. " - this is the correct amount for tax year 2020, which is the year we are currently doing taxes for.

"Turbo Tax fills in $27,400" - there are add-ons to the Standard Deduction for age and blindness. In your case, you are almost certainly filing married joint (MFJ), and both of you were born before January 2, 1956.

To see this, please look at the table on page 24 in IRS Pub 501.

Re: itemized vs standard deduction

Linda-B — Mon, 12 Apr 2021 20:25:48 GMT

Thank you very much! I did not know about the extra $1300/person. Yes, we are both over 65. None of the numbers were agreeing so I was at a loss and was not going to hit file until I knew what was correct.

Re: itemized vs standard deduction

Oldgolfer55 — Tue, 13 Apr 2021 23:35:24 GMT

Our itemized deduction comes to larger than our $26,100 standard deduction but TT is using the $26,100. Why?

Re: itemized vs standard deduction

NCperson — Wed, 14 Apr 2021 00:06:18 GMT

what is your AGI (line 11)? after subtracting the standard or itemized deduction that can't go below zero. is that the issue?

and when you state 'itemized is greater than standard', is that after you limit your medical expenses to the portion that is greater than 7.5% of line 11 and limiting your taxes to $10,000?