Standard deduction - joint filers

[vitorio5170]

Received a letter from IRS saying the my standard deduction is in error.

Checked TutboTax Home and Business Tax Year 2021 and found ot says standard deduction is $34,600 when the amout for joint filer for tax year 2021is $25,100.

Is the software being hack?

[Critter-3]

Are either of you over 65 or legally blind ?  Are you sure you did not itemize deductions and forgot to mail in the Sch A ?

The standard deduction is a specific dollar amount that reduces your taxable income.

For the 2021 tax year, the standard deduction is $12,550 for single filers and married filing separately, $25,100 for joint filers and $18,800 for heads of household.

For the 2022 tax year, the standard deduction is $12,950 for single filers and married filing separately, $25,900 for joint filers and $19,400 for heads of household.

Filing status	2021 tax year	2022 tax year
Single	$12,550	$12,950
Married, filing jointly	$25,100	$25,900
Married, filing separately	$12,550	$12,950
Head of household	$18,800	$19,400

How the standard deduction works

Even if you have no other qualifying deductions or tax credits, the IRS lets you take the standard deduction on a no-questions-asked basis. The standard deduction reduces the amount of income you have to pay taxes on.

• You can either take the standard deduction or itemize on your tax return — you can't do both. Itemized deductions are basically expenses allowed by the IRS that can decrease your taxable income.
• Taking the standard deduction means you can't deduct home mortgage interest or take the many other popular tax deductions — medical expenses or charitable donations, for example. (But if you itemize, you should hang onto records supporting your deductions in case the IRS decides to audit you.)
• If someone can claim you as a dependent, you get a smaller standard deduction.
• For the 2021 tax year, you get to add an additional $1,350 to your standard deduction if you're over 65 or blind; if you're also unmarried and not a surviving spouse, that jumps up to $1,700. For the 2022 tax year, these two additional standard deduction amounts increase by $50 to $1,400 and $1,750, respectively.

When to claim the standard deduction

• Here’s the bottom line: If your standard deduction is less than your itemized deductions, you probably should itemize and save money. If your standard deduction is more than your itemized deductions, it might be worth it to take the standard and save some time.
• Try this quick check. Although using the standard deduction is easier than itemizing, if you have a mortgage or home equity loan it’s worth seeing if itemizing would save you money. Use the numbers you find on IRS Form 1098, the Mortgage Interest Statement (you typically get this from your mortgage company at the end of the year). Compare your mortgage interest deduction amount to the standard deduction. Property taxes, state income taxes or sales taxes, and charitable donations can be deductible, too, if you itemize.
• Run the numbers both ways. If you’re using tax software, it’s probably worth the time to answer all the questions about itemized deductions that might apply to you. Why? The software (or your tax pro) can run your return both ways to see which method produces a lower tax bill. Even if you end up taking the standard deduction, at least you’ll know you’re coming out ahead.

[DoninGA]

If Line 12a on your 2021 Form 1040 shows an amount of $34,600 then that is not a Standard Deduction.  That would be the amount of itemized deductions you reported on Schedule A.  What is the amount on Line 17 of the Schedule A?

[victorio5170]

amount on Line 17 of the Schedule A Is $34,600. I also have a loss of $10,000 due to hurricane, which Is in a disaster report zone.

Since the IRS wrote to me and removed $600 from charitable deductions, are they correct? Do this depend if you itemized or not?

Please let me know. Thanks for your help.

[Critter-3]

Did you mail in your return and fail to include the Sch A & form 4864 ?    Respond back that the number is correct AND include the Sch A  AND the 4864 form showing the casualty loss to support your itemized deduction position.

[vitorio5170]

How about when you can deduct the $600 for joint filers.

To qualify for this deduction do you need to itemized? Or you loose it if you selected standard deduction?

That's my confusion on when it applies.

Thanks.

[DoninGA]

Filing jointly, the $600 charitable cash donation is only available if total your itemized deductions on Schedule A are less than the Standard Deduction for your filing status.  If the itemized deductions are greater than the Standard Deduction then the $600 cash donation cannot be entered on the Form 1040 Line 12b.

[victorio5170]

Then what is mean when TurboTax says

standard deduction claimed with qualified disaster loss

Is this standard deductions to to compare to the itemized deductions when decide if I can add the $600 as a charitable deduction, as you explained.

Why qualified?

Thanks.

[victorio5170]

Net qualified disaster loss- $9500

standard deduction claimed with qualified disaster loss - $25,100

Toral - $34,600.

which is the standard deduction $25,100 or $34,600 to be use to decide If charity donations of $600 qualify as deduction in my tax year 2021 return.

Thanks.

[Critter-3]

@victorio5170   @vitorio5170 

What tax year is this in reference to ?    And  did you mail in the return ?   

[vitorio5170]

Return for tax year 2021.

This from IRS add more confusion

Increased Standard Deduction – If you had a net qualified disaster loss and you elect to increase your standard deduction by the amount of your net qualified disaster loss

[vitorio5170]

Net qualified disaster loss- $9500

standard deduction claimed with qualified disaster loss - $25,100

Toral - $34,600.

Which is the standard deduction $25.100 or $34,600?

Please let me know!!!

[DoninGA]

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@vitorio5170 wrote:

Net qualified disaster loss- $9500

standard deduction claimed with qualified disaster loss - $25,100

Toral - $34,600.

Which is the standard deduction $25.100 or $34,600?

Please let me know!!!

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You are NOT reporting the Standard Deduction on the Form 1040 Line 12a, you are reporting the Deduction from Schedule A on Line 12a which is the amount of the disaster loss plus the amount of the Standard Deduction for your filing status.

From IRS Form 4684, Casualties and Thefts on page 3 - https://www.irs.gov/pub/irs-pdf/i4684.pdfpage=3

Increased standard deduction reporting. If you have a net qualified disaster loss and aren’t itemizing your deductions, you can claim an increased standard deduction using Schedule A (Form 1040) or Schedule A (Form 1040-NR), by doing the following.

1. Enter the amount from Form 4684, line 15, on the dotted line next to line 16 on Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR), and the description, “Net Qualified Disaster Loss.”

2. Also, enter on the dotted line next to line 16 of Schedule A (Form 1040) or line 7 of Schedule A (Form 1040-NR), your standard deduction amount and the description, “Standard Deduction Claimed With Qualified
Disaster Loss.”

3. Combine these two amounts and enter the total in the entry space on line 16 of Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR), and on Form 1040, 1040-SR, or 1040-NR, line 12a.

[vitorio5170]

If schedule A line 16 is $34,600 ($25,10+9,500 loss) under name other itemized deductions and

form 1040 line 12a is $34,600 therefore

My question 

Can I report $600 as charitable deduction in form 1040 line 12b?

If not, why (joint filer tax year 2021)?

Please let me know. Is very important to me? Thanks for your help I really appreciate it. I am just a regular user of TurboTax without much tax knowledge.

[Critter-3]

Can I report $600 as charitable deduction in form 1040 line 12b?

Yes you can ... of course.  It is on a different line and has nothing to do with line 12A.