Changing deduction from itemized to standard

Forum|Forum|5 years ago
July 14, 2021
8 replies
22 views

We filed before the bill was passed in March and due to our unemployment raising our income by 30k, the program used itemized deductions instead of the standard. Now that I am looking over my return, I see with taking the $20400 off of our AGI that we are eligible for the standard and it would raise our refund by quite a bit. Should I amend our return?

Not A Product Question

Critter-3

Level 15

Your question is confusing and it makes no sense ... do you and your spouse each have more than $10,200 of unemployment ? The unemployment is an exclusion ( up to 10,200 per person) on the Sch 1 and reduces your taxable income on the 1040 form ... it is not a standard or itemized deduction at all so I have no idea why you would need to change your deduction choice.

aarmstrong7726Author

Level 2

Aren't you just pleasant. I know that it's $10,200 each and both me and my husband had more than $10k in unemployment. Together the bill allows for $10,200 each which equals $20,400. After allowing for the $20,400 our AGI lowered to the point where the TurboTax app suggested we use the standard deduction, which in turn lowered the taxes owed and resulted in over $2000 more that should have been refunded to us. I read that unless things like the earned income credit was affected by the bill, you shouldn't amend, that's why I am asking. If you don't understand, don't reply. Especially if you're going to be rude. Everyone is stressed trying to figure all this out and the last thing any of us need is somebody being rude over a frickin question.

VolvoGirl

Level 15

How much was your itemized deductions before? It seems like if you lowered your AGI then Itemized would be better than the Standard Deduction especially if you had Medical which has to be over 7.5% of your AGI. You might have changed something else on your return besides the unemployment exemption. like your filing status. Or maybe it would give you the same lower taxes whichever you take now, itemized or standard.