While entering my deductions, I'm see messages/responses from Turbo Tax that "...I'm receiving a deduction for $ amount" but the "Federal Tax due" number doesn't change. So where is this deduction being applied? I still owe the same amount.
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We cannot see your screen or your tax return so we do not know what specific deduction you are asking about. If you mean your standard deduction, that reduces the amount of income you are taxed on. Or is is some other deduction?
Explain Standard Deduction—What is it?
https://ttlc.intuit.com/community/credits-and-deductions/help/what-s-my-standard-deduction/00/26370
Your standard deduction is on line 12a.
PREVIEW 1040
https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing
Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
If you are entering itemized deductions, you do not actually start to see an impact on your taxes until your itemized deductions exceed your standard deduction. Mortgage interest, property taxes, other state and local taxes, charitable contributions, and medical expenses in excess of 7.5% of your gross income are all itemized deductions.
Once you are done entering all your deductions and credits, if you select Wrap up tax breaks at the bottom of the Deductions & Credits screen, it will show you your standard deduction and itemized deductions. TurboTax automatically selects the bigger one, but you can override this if you wish, which may provide a bigger benefit on your state taxes.
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