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drams80
New Member

Federal deductions and credits

I just finished my taxes and  want to make sure they are correct.  Last year we received  $650 back from Federal.  This year It looks like we owe $2100.  We made about $8000 more this year.  But when I compare my deductions to last year which were at $28,963 I am only receiving $24,000.   Does this sound correct or could I have entered something wrong on my taxes? My wife and I get paid with W-2s.  My Charity Donations, Mortgage Interest Paid, Income Taxes paid and VRFs do not show up on my final  review, just the $24,000.  I was told to go into my forms and check my schedule As.  The only Schedule A i can find is for state, which does list all my deductions.  Any help will be greatly appreciated.

Thank You

WmG

1 Best answer

Accepted Solutions
xmasbaby0
Level 15

Federal deductions and credits

You got your standard deduction for married filing jointly instead of itemized deductions.


Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.


Your standard deduction lowers your taxable income.  It is not a refund 

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older

Look at line 8 of your Form 1040 to see your standard or itemized deductions.


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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3 Replies
drams80
New Member

Federal deductions and credits

So in a sense this new deductions for $24,000 hurt us since I had $28,963 in deductions for last year with basically same tax returns.
xmasbaby0
Level 15

Federal deductions and credits

Yes--you are not the only ones being negatively impacted by the "tax reform" laws.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
xmasbaby0
Level 15

Federal deductions and credits

You got your standard deduction for married filing jointly instead of itemized deductions.


Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.


Your standard deduction lowers your taxable income.  It is not a refund 

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older

Look at line 8 of your Form 1040 to see your standard or itemized deductions.


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

View solution in original post

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