I don't understand what they are asking with "would you like to take your standard deduction instead of your larger itemized deductions?"

[MichaelMc · Accepted solution]

There are certain instances in which a taxpayer may be required to take the standard deduction, even if it is financially disadvantageous. For example, if you are Married Filing Separately, and your spouse has filed taking the standard deduction, then you must also take the standard deduction.

Please see https://www.irs.gov/taxtopics/tc501.html for more information about itemizing deductions.

If you are certain that there is no requirement for you to take the standard deduction, then you may answer "no" to the question, and take the larger itemized deduction.