Shouldn't I be itemizing? No option for itemizing nor Schedule A

[pcutler3872]

In TurboTax Deluxe, it puts me in the Standard Deduction of 24,000, even though with itemizing I should have more than $24K. I've looked on the forums, but there doesn't appear to be a way to change this. Also, when I look on the forms, Schedule A is not showing in the Federal.

[xmasbaby0]

Are you just adding up all of the itemized deductions you think you have, without accounting for the new tax laws,  new limits and thresholds involved?

Many taxpayers are surprised this year 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.

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.  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.  It is not a refund 

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older)

Look at line 8 of your Form 1040 to see your standard or itemized deductions.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

The following states allow you to itemize deductions on just the state return: Alabama, Arizona, Arkansas, California, Delaware, Hawaii, Idaho, Iowa, Kentucky, Minnesota, Mississippi, Montana, New York, North Carolina, Oregon, and Wisconsin, 

HOW TO FORCE ITEMIZED DEDUCTIONS

https://ttlc.intuit.com/questions/1900142-how-do-i-change-from-the-standard-deduction-to-itemized-or...

Look on line 8 of your Form 1040 to see your itemized deductions (or your standard deduction)

[pcutler3872]

Thanks for the information.   I've seen the instructions to switch to itemized deductions as well, but I am not given this option in TurboTax Deluxe.

However, something you write is compelling.   I am in California.    Perhaps this is why I'm not given the option?:

The following states allow you to itemize deductions on just the state return: Alabama, Arizona, Arkansas, California, Delaware, Hawaii, Idaho, Iowa, Kentucky, Minnesota, Mississippi, Montana, New York, North Carolina, Oregon, and Wisconsin, 

If that is indeed the case, can you point me to where to see that (I did a google search but didn't see anything about it).

[Lisa995]

Being in CA has nothing to do with your federal itemized deductions.

California's standard deduction is much lower than the federal, so it is possible to take the standard on fed and still itemize on CA....not all states allow this, some states if you take the standard on fed, you have to take the standard on the state.

The new 2018 tax laws did limit property taxes/state and local taxes to 10K per tax return (for example,  if you paid 7K in property taxes and another 7K in state and local taxes, that adds up to 14K, but you'll only be able to use 10K as part of itemized deductions), so when you're adding up all your itemized deductions and think you can exceed the 24K standard, be sure you're taking this limitation into account.

[pcutler3872]

Thanks for the information.   Here's the specifics:

Gifts -                              $1,230

Mortgage interest        $12,403

Real estate taxes           $11,591

State and Local Income/sales taxes   $10K  (assume I hit the cap since the excess is subtracted below)

Vehicle Registration fees    $443

State and local taxes greater than $10K  -    (-$24,142)

If I'm calculating this correctly, I should be at about $35K of deductions.   I still find it strange that I'm not given any option to itemize deductions.

[Lisa995 · Accepted solution]

Property/real estate taxes and state/local taxes get added together and are capped at the 10K. 

So if you have 11K in property taxes and 34K in state and local taxes, that total of 45K is capped at 10K, you loose 35K in deductions right there.

Add your 12,400 in mort interest and 1230 in charity, you are still a few hundred dollars short of the 24K in standard deduction that you get.

[pcutler3872]

Thanks for helping me with this!