If itemized deductions has been eliminated for 2018 why is the TurboTax Deluxe software prompting me to enter them?

[Carl]

Itemized deductions have not been eliminated. But some itemized deductions have been limited is all.

[aebrells]

Do you know which state Turbotax is allowing for itemizing with fed standard?  I'm in North Carolina which does allow this for 2018 and wondered if TT is allowing NC to do this.

[SteamTrain]

Yes..NC does...I've prepared a couple test tax returns that are Std Ded Fed and it itemizes on NC automatically (if larger than NC StdDed )
BUT
 You need to enter all your deductions in the Federal Deductions&Credits section first..all the usual deductions  transfer from there.

[SteamTrain]

...and IF you did a QCD again this year, the NC tax return doesn't pick that up properly until you run thru the entire NC tax return Q&A...and then still have to go thru the NC error check, where a page pops up and asks again for the exact amount of the QCD.

[JOSELORTEGA8]

is there a new limit for mortgage interest ?

[SteamTrain]

@JOSELORTEGA8

Depends...Read the Mortgage Interest section here:

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return">htt...>

[SteamTrain · Accepted solution]

Because some states still allow itemized deductions ...even if Fed tax return uses the Std Ded..

...and the vast majority of deductions for Itemizing the state are transferred in from the Federal section...so just  put  them all in, unless you live in a state without an income tax.

[SteamTrain]

But yes, Fed itemized deductions may be used far less than in the past.

[miasrt4]

I live in Florida so we don't have any state income tax. Should I enter them anyway?

[Carl]

If you are filing single and you know for a fact that your itemized deductions will have no chance of exceeding $12,000, then don't bother.
If you are filing Married Filing Joint and your itemized deductions will not exceed $24,000, then don't bother.

[macuser_22]

Itemized deductions have not been eliminated  but the standard deduction has been doubled which means that very few tax payers will have enough deductions to exceed the new standard deductions.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount.  Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax,  Property (real estate and personal property) taxes at $10,000.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions).    Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

2018 standard deductions

$12,000 Single
$18,000 Head of Household
$24,000 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,600 if the taxpayer is also unmarried.