Why turbo tax said take standard deduction when I have the itemized dueduction
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Until the total of all of your "allowed" itemized deductions exceed your standard deduction, it makes no sense to itemize since the standard deduction will be better. Additionally, some itemized deductions are limited on the federal return. For example, SALT (State and Local Taxes) is limited to a maximum of $10,000. If you're married filing separate, that SALT limit is cut in half.
This is correct if federal was your only tax to be paid. But there are many possibilities where it is better to take the smaller itemized number because it gives you a MUCH smaller state tax. This is a flaw in TurboTax software. especially in their "Lets review your taxes to save you money" section. put in 24,000 in mortgage interest and check the box in Information sheet that elects to take itemized deductions even if lower then the standard deduction. In MD the difference is about $1,000.
Even if you take the Standard Deduction on Federal you should still enter all your deductions in case you can Itemize on state. Some state you can Itemize if you took Standard Deduction on Federal. They don't have to be the same way.
However, if you sold your old house and bought a new house last year, Turbo Tax will miscalculate your home value and disallow your mortgage deduction. So far I have found no help on correcting this issue.
@Riffatshah If it's more advantageous to take the Standard Deduction, you can manually choose to take the Standard Deduction.
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Nice list. Do you have a question? You posted in a public user forum.
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