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kohowski
New Member

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

TT shows equal federal tax due with standard and itemized and advises I select Standard. Within single Wrap Up screen. Where it correctly lists all my itemized deductions which are clearly higher than standard.
7 Replies
SteamTrain
Level 15

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

hard to know...but unlikely to be a bug.

 

1)  State income taxes paid + Property taxes paid is capped at 10,000.  so anything above that doesn't get added in.

 

2) Medical expenses are not used until they exceed 7.5% of your AGI, and then only the excess above 7.5% of AGI are used.

 

3) if you are self-employed, your  business expenses/deductions are used directly to reduce your SE income....and not as a part of yore "personal" itemized deductions.

_________________

So I'd check those complications first.

 

 

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
SweetieJean
Level 15

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

I see you are asking from TT Self-Employed.  If any of the $33k is from business expense deductions, they do not count towards the (Schedule A) personal deductions.  Rather, they are reported on Schedule C.

 

In addition, not all personal deductions (such as Medical) count at 100%.  

 

Critter-3
Level 15

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

 

 

Starting in 2018 deductions are changing and several will be limited.  There is a max 10,000 limit of State, local, property, and sales tax (SALT) deduction.  And employee job expenses have been suspended.  You can only deduct Medical/Dental that's over 7.5% of your AGI.

 

FAQ on changes

https://ttlc.intuit.com/community/tax-reform/help/how-will-tax-reform-affect-my-federal-tax-return/0...

 

Deductions that have been suspended for 2018-2025

https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

 

 

How do I preview my TurboTax Online return before filing?

You can view your entire return or just your 1040 form before you e-file:

  1. Open or continue your return.
  2. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
  3. With the Tax Tools menu open, you can then:
    • Preview your entire return: Select Print Center and then Print, Save, or Preview This Year's Return (you may be asked to register or pay first).
    • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
AmeliesUncle
Level 12

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

Does your tax return have Form 6251, which also means you have a number on Line 1 of Schedule 2?

kohowski
New Member

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

Thanks all. Actually the issue cleared soon as I put in W2 data. Now the system suggests taking 33k itemized deductions.

 

SteamTrain
Level 15

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

Interesting...I hadn't thought of a situation where the person's income was so low (at least, what was entered so far)  such that they didn't have a tax liability when the Std Ded was used...even if itemized was greater.

 

Say a single person had 12,000 of income entered, and 20,000 of itemized deductions.   IS the software smart enough to go ahead and use the Std Ded, and not the Itemized Ded?   Why?  Because Itemized Ded doesn't help them  (Can't have a negative AGI), AND if they do get a state refund for whatever wages they did have, if they used Itemized, the state refund potentially becomes income for the next year's tax return.

 

But I haven't thought it all the way thru yet.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Critter-3
Level 15

I have over 33k in itemized deductions. TT still shows standard deduction (24k for MFJ) is better for me? Is that a bug? Is it a bit too early to put the numbers in?

Oh good grief !!!!    You are  worried about the deductions before you completed the income section ???   Please complete the return in the order it is laid out to avoid issues like these ... we don't mind helping but we all assumed you had at least entered your  income before questioning deductions.

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