I have being using Turbotax for the last 5 years and each year I have itemized as the amount exceeds my standard deduction.
This year I itemized once again but Turbotax defaulted to the standard deduction even though the total items on Schedule A exceed my standard deduction by about $4K. My return in terms of types of income, adjustments, and itemized deductions are basically the same as last year, just slightly higher.
This seems to be an issue with the software. After I completed filling out the charitable donation section, the software indicated that because my charitable contributions did not exceed the SD amount that taking the SD was the better option. I had already entered other amounts (eg state taxes pd) that in combination with my charitable contributions exceeded the SD. The software didn't seem to factor in those items.
Have other encountered this problem with the software? Is there an estimated time for it to be corrected?
This is the first time I've had this happen and there is no way to override the error and chose my total itemized deduction amount which is higher than my SD.
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It's possible that due to the recent changes in tax law, TurboTax has chosen the Standard Deduction for a better tax outcome. Even if your total itemized deductions seem higher, the software may calculate a lesser amount due to IRS limitations for certain expense categories. Your allowable itemized deductions may actually be lower than the standard deduction.
TurboTax gives you the option to claim itemized deductions even if the software defaults to the standard deduction. This option appears at the end of the Deductions & Credits section on the page that displays the outcome with a comparison of the two options. Below those images is a box for "Change my Deduction." Click that box and choose which option is best for your tax situation.
For more information, see: How do I change from the standard deduction to itemized (or vice-versa)?
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