Does Turbotax automatically use the standard deduction for a state return if it uses a standard deduction for the federal return, even if itemizing is better?

[ChristieB · Accepted solution]

It depends: if your state is one that allows you to Itemize on the State return even if you claim the Standard Deduction on your federal return (such as New York) it will automatically consider both options and then choose the one that provides the largest benefit for you. 

If your state requires that you take the Standard Deduction if you also take the Standard Deduction on the Federal Return, then TurboTax will automatically do so in order to be compliant with your state's laws.

[t021483]

Thank you Christie for your speedy response.  That answers my question in theory.
North Carolina does allow itemizing the state returns even if the standard deduction is taken on the federal return. Could you confirm that  Turbotax premier online works that way for North Carolina?  It doesn't seem to based on my calculations.  Thank you

[ChristieB]

I just tested it and it was successful, if the items from NC D-400 Supplemental Schedule S exceed your standard deduction (Single/Married Filing Separately $8,750, Married Filing Jointly/Qualifying Widower $17,500 or Head of Household $14,000) then it will automatically apply.
You can check and see what deduction you're getting on your state return by taking the following steps:
1.) On the left-hand side of your screen, click Tax Tools
2.) Click Tools
3.) On the window that pops up, click View Tax Summary
If you were already in the NC state return portion, it will automatically show your NC tax summary. If not, it will be in the left-hand menu.
If the amount in the standard/itemized deduction is higher than the amounts I listed above, this means that TurboTax has switched over to the Itemized deduction for you.
I hope this helps resolve your question, if not please let me know so that I can continue to help you.

[t021483]

Christie, your quick and clear advice was very much appreciated.  I've been using Turbotax for a few years and never noticed the "Tax Tools" section you suggested.  It was extraordinarily helpful.  I am quite pleased with Turbotax and thrilled with the assistance that you provided.  Thank you!

[ChristieB]

You are welcome! I'm glad I could help!