How do I select Itemized Deductions when the turbotax program is selecting Standard Deduction? I itemized deductions on my entry.

Forum|Forum|5 years ago
March 14, 2021
3 replies
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I itemized deductions as I completed the program - resulting in $1802 tax due amount. But the program puts in the standard deduction resulting in a higher tax due amount of $1814, even though I've clearly selected Itemized deductions.

TurboTax Self Employed Online

Best answer by macuser_22

Hi Dave. Thanks for trying to help. As of my last post I had already completed both my federal and state returns - both were accepted. So probably too late to make a change, and don't think it would make enough difference to make it worth it. I was just trying to understand a confusing part of the online preparation of my return. Maybe it'll work out better next year.

It just made me wonder why I'm tracking all of these charitable contributions if somehow I'm not eligible to do itemized deductions.... weird !

For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

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

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.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

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.

2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

SweetieJean

Alumni - Champ

Your self-employment (Schedule C) expenses don't count towards the ones used for Schedule A itemized deductions (which are then compared to Standard).

Also, not all Schedule A ones count at 100%. There is a $10,000 cap on states/local/property taxes, and Medical is subject to a 7.5% of AGI floor.

ward-mann-gmail-Author

Level 2

More specifically, I entered $5576 in charitable deductions, and the program forced me to enter only $300 for charitable deductions on line 10b of 1040 form. I wasn't directed at all to complete a Schedule A even though the program said I'd save $12 by doing itemized vs standard deductions. $12 isn't much. So rather than delay I simply went with the only choice the program was giving me - Standard Deduction. That part was confusing and there was no explanation during the process, at all.

krhorner

Level 2

I recommend doing the following after logging back into TurboTax to determine what deduction is being used.

Go back to your Deductions & Credits Screen.
Scroll down to the bottom and select Wrap up Tax Breaks.
You should continue through the screens until you see the following screen:

Itemized vs standard

Your information will be summarized based upon your input.  You will be able to see the breakdown on this screen.

Please note, TurboTax will select the option which provides the greater tax benefit for you.

Please comment if you are still having issues after reviewing your deduction using the steps above.

@Den8

It seems there is a bug in the online software that will not allow you to select itemized deductions if the standard deduction + $300 is larger. It is to my benefit to itemize because I owe less in state taxes if I do. I have been in contact with TT several times and everyone tells me to do the exact same thing that I have been doing, to select the "change my deduction" button and select itemized. The software tells me it is locking in the itemized, but never changes my tax due amount and never shows anything other than the standard deduction. They need to fix the online software to make the button work! There doesn't seem to be a work around like those with the desktop version have been posting. This is frustrating me to no end and time is ticking to get these taxes filed!

suenatkins

Level 3

It is to my advantage to itemize for my state taxes but TurboTax keeps choosing the standard deduction and would not let me change. I found a work around. Go to forms. Click on info wks. Go to part VI and check one of the three boxes. Hope this helps.

Poppie

Level 2

Thanks. This was the only solution that worked for me. As a software engineer, it is hard to believe that this option is buried under Info WKS! One click and I saved $1700.

coppens1

Level 2

Dear Forum, on a 1040 I have standard deductions totaling $34069, but the Turbotax Deluxe program is only taking the standard deduction of $30700. I found a solution on the forum, by using the interview process, but I think it is very time consuming, and very poor programming.

The interview section is the ONLY PLACE this is covered!

I normally use the forms, not the interview section. Overriding the standard deduction should be a choice in the forms, not something covered ONLY in the interview section.
JC

DoninGA

Level 15

@coppens1 The TurboTax program will automatically use Itemized Deductions if the amount of Itemized Deductions is greater than the Standard Deduction for your filing status.

The total Itemized Deductions is on Schedule A Line 17. Is the amount on your Schedule A Line 17 greater than your Standard Deduction of $30,700?

Also, there are options on the Federal Information Worksheet in Part VI for Standard Deductions/Itemized Deductions