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Go back to the Deductions & Credits section of the program. Scroll down to the bottom of the page and click on Continue.
Click on Federal
Click on Deductions & Credits
After several screens you will land on the the screen showing the amount of your Standard Deduction and the amount of your Itemized Deductions. Which is larger?
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. The standard deduction makes some of your income “tax free.” It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2023 Form 1040.
2023 STANDARD DEDUCTION AMOUNTS
SINGLE $13,850 (65 or older/legally blind + $1850)
MARRIED FILING SEPARATELY $13,850 (65 or older/legally blind + $1500)
MARRIED FILING JOINTLY $27,700 (65+/legally blind) ) + $1500 per spouse
HEAD OF HOUSEHOLD $20,800 (65 or older/blind) + $1850)
Thank you for your response. The $43,784 itemized deduction amount is what Turbotax is showing me. I use itsdeductible throughout the year and import my information. (We have high medical bills, pay property tax, and give a lot to our church.) The $43,784 is greater than the standard deduction of $27,700. On the screen where I'm asked which deduction I want to go with, I choose Itemized. I want to itemize because in Wisconsin we can claim the Homestead Credit and an itemized deduction credit. Last year is similar to this year for us. We chose Itemized Deductions easily last year with the Turbotax Online. No glitches. I thought taxpayers could actually choose if they want to itemize or not. Turbotax isn't giving us a choice. Are others having issues with this screen and link?
Just be mindful of the very tough threshold for medical expenses and the $10,000 cap for property tax. If you want to force itemized deductions and see what happens:
HOW TO FORCE ITEMIZED DEDUCTIONS
Thank you for your response. The $43,784 itemized deduction amount is what Turbotax is showing me. I use itsdeductible throughout the year and import my information. (We have high medical bills, pay property tax, and give a lot to our church.) The $43,784 is greater than the standard deduction of $27,700. On the screen where I'm asked which deduction I want to go with, I choose Itemized. I want to itemize because in Wisconsin we can claim the Homestead Credit and an itemized deduction credit. Last year is similar to this year for us. We chose Itemized Deductions easily last year with the Turbotax Online. No glitches. I thought taxpayers could actually choose if they want to itemize or not. Turbotax isn't giving us a choice. Are others having issues with this screen and link?
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