itemize or standard deduction last year?

[harvardholmes]

Working on 2022 taxes, desktop edition:  To decide if I itemized or used the standard deduction last year (2021), I consulted the help topic "Did I Itemize Deductions?"  It says look for the standard deduction amounts on last year's return: $25,900 for MFJ.  This does not match the amount on 2021 Form 1040 (which is $25,100).  What am I missing?

[DoninGA · Accepted solution]

The information that you posted is incorrect.  It is referring to MFJ for tax year 2022 which is $25,900

The $25,100 on your 2021 tax return for MFJ is correct for tax year 2021.

Standard deductions for 2021

Single - $12,550 add $1,700 if age 65 or older
Married Filing Separately - $12,550 add $1,350 if age 65 or older
Married Filing Jointly - $25,100 add $1,350 for each spouse age 65 or older
Head of Household - $18,800 add $1,700 if age 65 or older

[harvardholmes]

Thanks, but I am still confused.  

Starting from TurboTax FEDERAL TAXES "Let's See if Your 2021 California Refund is Taxable

Did you take the standard deduction last year, or did you itemize your deductions"

I chose "I don't know what I did"

This brought up: On Demand Tax Guidance "Did I Itemize Deductions?" which said:

"If you're not sure whether or not you itemized deductions last year, take a look at Form 1040, line 12 on your last year's tax return.

The standard deduction amounts are:
- $12,550 for Single or Married Filing Separately
- $25,900 for Married Filing Jointly or Qualifying Surviving Spouse
- $18,800 for Head of Household"

So, the TurboTax heading is pretty clear that tax year 2021 is the relevant year, (which I agree with) and the next question labels it as "last year".

Then the On Demand Tax Guidance pops up, and uses the phrase "last year", which by context should mean tax year 2021, which, as I understand it, is the correct year to base the decision on.  But the Tax Guidance then provides standard deduction amounts from tax year 2022.  Are these wrong deduction amounts (provided by Turbotax) what you are referring to when you say "The information that you posted is incorrect"?  If so, I understand, as I intended to reproduce the numbers provided by Turbotax so they could be fixed.  If not, please let me know what is incorrect.

[rthelin]

I agree, Turbotax info is wrong.  Below is a screenshot from my 1040 and this year's turbotax.

The information in Turbotax should state $25,100.

25,10025,900

[DMarkM1]

Yes, the standard deduction for Married Filing Joint for TY2021 was $25,100.  If your 2021 tax return form 1040 shows $25,100 on line 12a then you used the standard deduction in TY2021.  

[kzc]

You are incorrect.  TurboTax has the wrong information for tax year 2021 within their On Demand Tax Guidance for completing taxes for 2022.  This should get corrected to avoid confusion and wasting time trying to figure out the correct figure for MFJ. 

[DawnC]

State refunds are not taxable if you took the standard deduction in the previous year.   In the state refund section, the On-Demand guidance screen is referencing the 2022 numbers instead of the 2021 numbers.   The 2021 numbers are below.  This will be corrected in a future update; thank you.   @kzc 

The standard deduction for married couples filing jointly for tax year 2021 rises to $25,100, up $300 from the prior year (2020).  For single taxpayers and married individuals filing separately, the standard deduction rises to $12,550 for 2021, up $150, and for heads of households, the standard deduction will be $18,800 for the tax year 2021, up $150.