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.
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.
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So I'd check those complications first.
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%.
How to change between the Standard Deduction and Itemized Deductions
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
Deductions that have been suspended for 2018-2025
You can view your entire return or just your 1040 form before you e-file:
Does your tax return have Form 6251, which also means you have a number on Line 1 of Schedule 2?
Thanks all. Actually the issue cleared soon as I put in W2 data. Now the system suggests taking 33k itemized deductions.
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.
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.