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As I am completing the Deductions and Credits section in TurboTax, the message informs me that "We've chosen itemized deductions for you" and "What you are getting: Federal Itemized Deductions". Doing so provides for $130 more deductions, so itemized is the way I want to go. However, when I finalize my return, it uses the Standard Deduction. Why???
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It's possible that the software chose the standard deduction after completing the calculations.
To double check, take a look at your total itemized deductions on Schedule A line 17, and your 1040 line 12. If the amount is lower than the standard deduction, then the software has calculated correctly.
The standard deduction for 2020 is as follows:
Here is a TurboTax article about the standard deduction vs. itemizing.
To view forms in TurboTax,:
If you want to preview your tax return before filing, follow the steps below:
To view Schedule A and other worksheets in your tax return, follow the steps below:
My total itemized deductions are 26,230, while my standard deduction is 26,100 (married, with one of us being over age 65). So my itemized deduction is slightly larger.
However, after further review, I see that on my form 1040-SR, that line 10b, allows me to claim 300 of my charitable contributions as a negative adjustment to my income... but only if I take the standard deduction. Therefore, taking the standard deduction + the negative adjustment to my total income, that gives me the lowest taxable income. Is this correct?
Yes it is! You get the Standard Deduction + the extra 300 on line 10b. That can be more than your Itemized Deductions.
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