Be Careful with Itemized Deductions Vs. Standard Deductions

[Cumbie]

Turbod tax selected the standard deduction for me even though my itemized deductions where higher.  From another thread, someone said to check the info sheet part IV for an X in take standard deduction even if less than itemized.  Ok, so I fixed that.  Frankly, I have no idea how that box got checked.

For my return, the higher itemized deduction did not change my federal taxes, but it did change my state taxes!!  This seems like a turbotax calculation error.  It almost cost me $500. In my state, Maine, you get the lesser of the state's standard deduction or the federal deduction. The federal standard deduction was below the limit and the itemized deduction was above the limit.  This should be addressed.

[LeticiaF1]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[Cumbie]

Where/how do I provide the token number

[MarilynG1]

You can post your token number here, direct to @LeticiaF1.

@Cumbie 

[Cumbie]

@LeticiaF1

Token 

83389166-76165795

[Cumbie]

@LeticiaF1

83389166-76165795

[Cumbie]

@LeticiaF1

I have tried 6 times to get the code added.  The system is awful.  Good luck

[RogerD1]

TurboTax was correctly determining your Maine standard/itemized deduction.  For your filing status, the Maine Standard Deduction is $30,000.  Itemized Deductions in Maine are capped at $36,300.  Maine also follows your Federal filing so that you are required to use the Maine standard deduction if taking the Federal standard deduction, and using itemized deductions in Maine if you itemize on your Federal return.

When you had the standard deduction forced on the Federal Return, then switched to itemizing, this caused you Maine income to decrease by the difference between the itemized amount of $36,300 or the standard amount of $30,000.  The additional deduction of $6300 for itemizing caused your refund to increase in Maine by $365.  This is the expected outcome.

[VolvoGirl]

@Cumbie   The filter is eating your token number.  You can try adding dots or dashes in it or post a screenshot of it.

[Cumbie]

appreciate the response but your analysis is incorrect. I had to force the itemized deduction to get the increased refund from Maine. In TurboTax it said that th standard and the itemized deduction had the same result. But this is only true for federal tax!!  That’s the point I’m making.  It should include state taxes or clearly indicate it only applied to federal taxes. 

[user17723256041]

I'm having the same issue with my Home & Business Edition- Desktop Edition.  My itemized deductions are ~$8K higher than the standard deduction but are still under the new 2025 SALT cap of $40K (and I cannot find that my state of California caps SALT differently). 

• TT software
  • defaulted me to using Standard,
  • showed that both deductions = the same tax-owed result (bug?!?!),
  • I did NOT have that box checked in the Forms to default to Standard even if better than itemized.   

I feel like my taxes should be reduced by another ~$8K.

Please advise?

[user17723256041]

Forgot to mention... when I try to change to using the Itemized Deduction via the on screen prompts, it fails and just stays with Standard. = BUG

[user17723256041]

Small correction.  Though this same software behavior occurred when my itemized deductions were just over $39K, I found another $1K deduction that put me slightly over... at which point I would expect just to deduct the capped max of $40K even.