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Returning Member
posted Feb 17, 2023 3:15:42 PM

Itemized deduction versus standard deduction - TurboTax makes wrong recommendation

TurboTax is making the wrong recommendation when it comes to itemized versus standard deduction. I am aware of the $10,000 max SALT deduction and it has nothing to do with that. If I choose the recommended standard deduction, it shows that my refund goes down by about $5,000! 

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3 Replies
Expert Alumni
Feb 19, 2023 8:42:11 AM

You seem to be working in the desktop version of TurboTax.

  • In Forms mode please check your Form Schedule A.  
  • Check line 17 Total Itemized Deductions.
  • There are significant limitations on many of your deductions.
  • Compare this with the Standard Deduction.
    • For single taxpayers and married individuals filing separately, the standard deduction is $12,950 in 2021. 
    • For married couples filing jointly is $25,900, and  
    • For heads of households, the standard deduction is $19,400.   
    • If you're at least 65 years old or blind, you can claim an additional 2022 standard deduction of $1,400 ($1,750 if using the single or head of household filing status).  
    • If you're both 65 and blind, the additional deduction amount is doubled

Now please check your 1040, Line 12 to confirm which deduction was posted.

 

If the Itemized Deduction is still greater than the Standard deduction, and posted to line 12 of your 1040, please contact us again.

New Member
Apr 10, 2024 11:25:15 PM

I have similar issues. In Schedule A, the total itemized deduction is greater than the standard, and the system doesn't offer the option to use the itemized deduction. I also tried to check the Schedule A line 18 box to apply the itemized deduction, but the software doesn't allow the box to be checked. By the way, I am using the 2023 Mac Turbotax Premier Desktop version. 

Expert Alumni
Apr 11, 2024 7:14:24 PM

One thing you can try is to make sure your filing status is not married-separate, in which case you couldn't itemize your deductions unless your spouse did the same. @Qiu076