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New Member
posted Aug 10, 2022 10:59:20 PM

Can itemized deductions be included in state CA) as well as federal?

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3 Replies
Level 15
Aug 11, 2022 8:22:35 AM

if you enter all your itemized deductions, Turbo Tax will figure out which are eligible for Federal and which are elgible for California, if that is what you are asking.   if taking the standard deduction is to your better benefit, turbo tax will do it that way.... is that what you are asking? 

Level 15
Aug 11, 2022 9:00:57 AM

Each state has their own idea for what's deductible and what's not.

That's why you use tax software.

@harshargolla-gma 

Level 15
Aug 11, 2022 11:13:43 AM

Information flows from your federal return to your state return.   If you enter itemized deductions for your federal return they will flow to the CA return.   As for whether they will have any effect---we cannot say, since we cannot see your screen and do not know what you are entering.

 

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

 

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

 

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12a of your 2021 Form 1040.

 

 

 

2021 STANDARD DEDUCTION AMOUNTS

 

SINGLE $12,550  (65 or older + $1700)

 

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

 

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

 

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

 

Legally Blind + $1350