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barnesrichard
New Member

My Schedule A deductions exceed the $12,700 standard deduction, but turbotax says I still need to use the standard deduction. Why?

 
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macuser_22
Level 15

My Schedule A deductions exceed the $12,700 standard deduction, but turbotax says I still need to use the standard deduction. Why?

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

For 2017 the standard deductions are:

Single or filing Married Filing Separately - $6,350
Married Filing Jointly or Qualifying Widow(er) - $12,700
Head of Household - $9,350

(If over 65 or blind add $1,250 - $1,550 if filing single or HOH)

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.

Likewise for miscellaneous deductions such as union dues, work related expenses, etc. are first reduced by 2% of AGI.

For example, If your AGI is $30,000 then 2% is $600 so if your job related expenses were $650, then only $50 would become an itemized deduction.

Also Itemized deductions start to phase out if AGI exceeds $155,650.

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.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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3 Replies
SweetieJean
Level 15

My Schedule A deductions exceed the $12,700 standard deduction, but turbotax says I still need to use the standard deduction. Why?

Are you Married Fling Separately?  Or subject to AMT?  Also, itemized deductions phase out at higher incomes.
macuser_22
Level 15

My Schedule A deductions exceed the $12,700 standard deduction, but turbotax says I still need to use the standard deduction. Why?

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

For 2017 the standard deductions are:

Single or filing Married Filing Separately - $6,350
Married Filing Jointly or Qualifying Widow(er) - $12,700
Head of Household - $9,350

(If over 65 or blind add $1,250 - $1,550 if filing single or HOH)

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.

Likewise for miscellaneous deductions such as union dues, work related expenses, etc. are first reduced by 2% of AGI.

For example, If your AGI is $30,000 then 2% is $600 so if your job related expenses were $650, then only $50 would become an itemized deduction.

Also Itemized deductions start to phase out if AGI exceeds $155,650.

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.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
barnesrichard
New Member

My Schedule A deductions exceed the $12,700 standard deduction, but turbotax says I still need to use the standard deduction. Why?

Thank you! Very helpful info. I'm using online version, so will check actual deductions vs. standard deduction.
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