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TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax. See the screenshot below of that screen:

 

Screen Shot 2020-07-15 at 6.38.52 PM.png

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TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

Look at line 9 of your Form 1040--does it show your standard deduction?

 

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

Try "forcing" itemized deductions.  Does that have any effect at all?

HOW TO FORCE ITEMIZED DEDUCTIONS

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

 

 

We cannot see your tax return.  We can only venture our best guesses as to what is happening based on the very limited information that you provide here.  If you are getting no effect from itemizing then it is because you do not have enough itemized deductions.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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5 Replies

TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

Sales tax and/or property  (state and local) tax are each itemized deductions.  If your itemized deductions did not exceed your standard deduction that is why you are seeing no effect on your tax due or refund.

 

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.  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. 

 

2019 Standard Deduction Amounts

 

Single $12,200   (+ $1650 65 or older)

Married Filing Separate  $12,200   (+ $1300 if 65 or older)

Married Filing Jointly $24,400   (+ $1300 for each spouse 65 or older)

Head of Household $18,350  (+ $1650 for 65 or older)

 

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

The standard/itemized deductions can only reduce your income hence reducing federal taxes ... they cannot help you if you owe other taxes like SE  or  an early withdrawal penalty.  Review the return carefully ... if your fed tax is at zero then which option you choose is immaterial. 

TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

It’s not zero. Your comment is irrelevant.

TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

Then review your return before and after the change to see what is happening ... some non refundable credits may be the culprit  ... all anyone can do on this public volunteer  forum is surmise and take guesses.  

TurboTax doesn't change the Federal Tax Due when I change the deduction between the State and Local Income Tax and Sales Tax

Look at line 9 of your Form 1040--does it show your standard deduction?

 

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

Try "forcing" itemized deductions.  Does that have any effect at all?

HOW TO FORCE ITEMIZED DEDUCTIONS

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

 

 

We cannot see your tax return.  We can only venture our best guesses as to what is happening based on the very limited information that you provide here.  If you are getting no effect from itemizing then it is because you do not have enough itemized deductions.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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