deductions & credits

[run4ottawa]

In the comparison of 2021 and 2022 deductions and credits, I don't understand why the standard deduction is recommended this year but it wasn't last year.  My itemized deductions last year totaled $15, 944.   When I add up what it would be this year, it is $16,949.  Yet the program recommends the standard deduction, which is more than $2000 less.  Would the fact that I had more withheld this year cause the standard deduction to be recommended?  Additionally, my medical expenses increased this year and by my calculations they are more than 7.5% pf my AGI, which was not the case last year.

[SantinoD]

The program will determine the highest deduction for you. As long as the Standard deduction is higher than your Itemized deductions, the program will always choose the Standard since it is giving you the best possible outcome. 

[run4ottawa]

But, it is not higher than my itemized deductions.  That is what I am not understanding.   By my calculations, my itemized deductions total $16,949, and the standard deduction is $14,700.  And that  figure doesn't even include my medical expenses.  They exceed 7.5% of my AGI by about $2,000.  I should be able to add that to my itemized deductions, so they would exceed $18,000.

[JamesG1]

In TurboTax Online, go to Federal / Deductions & Credits / Your tax breaks.

Property (Real Estate) Taxes may display a different amount than can be deducted on Schedule A Itemized Deductions because those deductions are subject to a $10,000 cap.

Medical Expenses may display a different amount than can be deducted on Schedule A Itemized Deductions because there is a 7.5% of AGI reduction.

Are you able to select Change my deduction at the screen Standard Deduction / Itemizing deductions is right for you?  

Viewing the Schedule A Itemized Deductions will display the amounts which are deductible rather than the dollars that are entered into the software.

@run4ottawa 

[run4ottawa]

I checked the "change my deduction" box to "itemized" so I could see a breakdown of figures.  The mortgage interest figure listed for this tax year differs from what was on my 1098 (which is the figure I entered).  Even though I entered $4807, the deduction was listed as $795.  Why would that figure differ?

[ThomasM125]

For mortgages beginning after 2017, you can only deduct the portion of your mortgage interest that belongs to the first $750,000 of your mortgage. If that situation does not apply to you, you may have entered your mortgage balances wrong when you entered your mortgage interest, so you should re-visit those entries.

Also, if you have a rental activity in your home or a home office deduction associated with a business, that would limit the amount of mortgage interest you can take as an itemized deduction, since part of it would be allocated to the business.