Bug in TurboTax Deluxe 2020 Deductions--Only Returns Standard Deduction

[kwtayers]

I've just finished entering all of my tax data into TurboTax Deluxe 2020, including itemized deductions that are greater than the standard deduction.  The step-by-step interface told me that I would be getting the Federal Itemized Deduction on my taxes.  However, when reviewing my tax forms I found the following;

1. The correct itemized deduction on Schedule A that exceeds the Standard Deduction

2. The Standard Deduction was entered as my deduction on the 1040 form.  

I've tried a number of ways to override this issue, but to no avail.  That has included adjusting the type of deduction taken in the step-by-step interface.  At this point, there seems to be a bug in the software.  Is this the case and how do I resolve this problem? 

[KrisD15]

I do think there could be an issue when the Standard Deduction is within 300 of Itemized Deductions BECAUSE the standard will be more if you have at least 300 in charitable contributions as a result of the new this year "above the line up to $300 charity deduction".

If this is the case, you might be better off with the Standard Deduction, or you'll need to change your charitable contributions. 

DESKTOP

Go to Step-By-Step input (top right corner of screen)

Click Federal

Click Deductions & Credits along the top

Click “I’ll choose what I work on”

Edit or Update Donations to Charity in 2020 if needed, then click “Done with Charitable Donations”

Scroll down the “Your 2020 Deductions & Credits” screen and click “Done with Deductions”

Click Continue on the “Let’s Check Your Deductions and Credits” screen

Continue through the following interview questions until you get to the “Here Are Your 2020 Deductions & Credits” screen

Click Continue

If the next screen says “The Standard deduction is Right for You!” click Continue or change to Itemized

ON THE NEXT SCREEN enter the cash contribution made in 2020 up to 300 if taking the Standard Deduction or 0 for Itemized and click Continue

Your 1040 should update

[SweetieJean]

Even if your Itemized deductions exceed the Standard one, they cannot lower you taxable income to less than zero.  If that is the case, TT substitutes Standard, as long as it (along with any other deductions) reduces your taxable income to zero.  

[kwtayers]

@KrisD15  So, TurboTax tells me that an Itemized Deduction is best for me, which I agree with.  However, on my 1040 form, it shows that we're taking the Standard Deduction.  Now, we are within $300 of the Standard Deduction.  So, is the software just defaulting to the Standard Deduction regardless of what the user wants? There is no simple way to adjust that, especially if the Step-by-Step workflow is telling me that I should have the Itemized Deduction.  How do I override what the 1040 form is doing?

[JamesG1]

At some point, intentionally or unintentionally, did you elect the $300 Charitable Cash Contributions under CARES Act?  If so, it would appear on line 10b of the Federal 1040 tax return.  Perhaps this deduction is confusing the software.

You can review the 1040 in TurboTax Online by following these directions. 

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• Down the left side of the screen, click Back to return.

You can print or view your full tax returns prior to filing after you have paid for the software.

[RockinRon]

I have the same issue.  I'm seeing that my itemized deduction is clearly more than the standardized ($24K), but the software chooses std over itemized.  Spent a whole day trying to figure this out.  C'mon Intuit, fix it already!