Standard Deduction VS Itemized Deduction

[RacknarockGod]

The 2022 standard deduction for single is $12,950 and for married filing jointly $25,900.

Since SALT is only $10,000 (i.e., less than standard deduction), wouldn't standard deduction be the obvious selection for normal workers (i.e., no business)?

I just want to check if I misunderstand the idea of deduction.

[CatinaT1 · Accepted solution]

Using the standard deduction rather than itemizing deductions is becoming increasingly common.

However, more than just State and Local Income Tax (SALT) counts toward your total itemized deduction.

You can deduct mortgage interest, charitable contributions, and medical expenses as well. Just like the maximum you can deduct for SALT, there are limitations/qualifications in each of these categories, but they add to your total itemized deduction.

See this article for additional information:

Standard Deduction vs. Itemized Deductions: Which Is Better?

[Richgolferboy]

if my standard deduction is more than my taxable income, why would i have a federal tax due??

[DoninGA]

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@Richgolferboy wrote:

if my standard deduction is more than my taxable income, why would i have a federal tax due??

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You would not have federal income taxes owed.  However, if you have net self-employment income you will have Self-Employed taxes owed.

[Richgolferboy]

thanks - got it

[olezlie]

How do I take the standard deduction on my federal return and take the itemized deductions on my state return?

[SteamTrain]

@olezlie 

Some states allow it to be done differently, but other states require the same method be used as you used on the Federal tax return, so it depends on what state you are filing.

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IF your state allows them to be different, the software will "usually" deal with it automatically.  i.e. you enter all your possible itemized deductions in the Federal section, and whichever ones the state can use will automatically be transferred to the state's software....and if the "State" itemized deductions is greater than the state Std Deduction, then the software will use the larger one, even if the Std Ded was used on the Federal tax return.

Occasionally, there are a few deductions that a state may allow that the Feds do not...if that is the case, and if there is no itemized deduction entry in the Federal section for that state deduction, then there is usually a place in the State interview where you can add it in.   

But there is a huge difference between the software for all the various states, and the interview and progression in the software will depend on what stare is involved.