different deductions for 2018

[snowflower27]

In 2018, i used standard deduction and my bf used itemized deduction. we got married in 2019. for 2018 state tax refund, it asked if we used itemized or standard deduction? we can only choose one since turbotax only allows one combined entry for each state. should i choose itemized or standard deduction for 2018?

[VolvoGirl]

TurboTax does not handle this. If you enter more than one state refund, it just adds them together. It does not ask separately for each refund whether you itemized last year. It just asks once after all the refunds have been entered. There is only one State and Local Income Tax Refund Worksheet, so there is no way to do the calculation separately for the taxpayer and spouse. The help for the worksheet even says that a change in marital status from last year is one of the situations it does not handle.

So either.....

If you both itemized deductions last year then add them together and enter it.

If you both took the standard deduction last year add them together and enter it.

If one person took itemized deductions and the other one took the standard deduction then only enter the one that itemized deductions.

And answer the follow up questions.

[Opus 17]

Your state tax refund received in 2019 is not taxable if you took the standard deduction.

Your boyfriend's tax refund might be taxable income if he itemized in 2018 and received a tax benefit from his state income tax withholdings.  For example, in 2018 the standard deduction for single was $12,000.  Suppose his total deductions, including mortgage, charity, and state taxes were $13,500.  Then in 2019 he got a $2000 state tax refund.  That means that he really only had $11,500 in deductions.  But in that case, he would have taken the standard deduction of $12,000.  So even though he got a $2000 refund, his tax benefit was $1500 so that is the amount that is taxable.  (Other the other hand, if he had $14,000 of itemized deductions and got a $200 state tax refund, that refund is taxable in 2019 because his itemized deductions still would have been way more than the standard amount.)

It sounds like you need to answer "yes" that you itemized, but only your spouse's tax refund will be taxable now.  If you want to go through all the calculations to be sure, only use the numbers from his single return in 2018. 

[snowflower27]

thank you very much!