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ardbino
New Member

My 2022 Deductions are higher than Standard Deduction limits but TT defaults to Standard deduction

My Itemized deductions in 2022 were similar to 2021 but now I am being forced to take the Standard Deduction which is much lower than my actual itemized deductions. What changed between 2021 & 2022 tax years? I understand there was a $10k deduction limit, but is that taking effect this tax year finally? 

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2 Replies

My 2022 Deductions are higher than Standard Deduction limits but TT defaults to Standard deduction

Are you making the common mistake of just adding up all the amounts for your itemized deductions without considering the caps and thresholds that must be met?

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

 

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

 

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

 

 

 

2022 STANDARD DEDUCTION AMOUNTS

 

SINGLE $12,950  (65 or older + $1750)

 

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

 

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

 

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

 

Legally Blind + $1750

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
ardbino
New Member

My 2022 Deductions are higher than Standard Deduction limits but TT defaults to Standard deduction

Thanks for the message, it turns out the issue was due to a bug I discovered in the Windows application where when I clicked to the next stage of entering the mortgage 1098 form, it immediately assumed the mortgage was not a qualified deduction. After deleting it and re-entering it and skipping the 3rd menu, it captured it correctly. This case is closed now. Thanks.

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