STD vs Itemized. Differing amounts but I have zero itemized deductions. Why the differing amounts?

[Joe6801]

• Taking the Standard Deduction would get you a federal refund of $704.
• Itemizing your deductions, your tax due would be $1,579.
  
  Married filing separately but itemized instead of STD because the wife will file itemized. If not, would have stuck with STD. I don't see a legitimate reason for a higher amount as I have not keyed in any donations, mortgage interest, etc....
  
  Any of reason why the different amounts?
  

[Carl]

When a married couple files separate returns:
If one selects the standard deduction, then both must take the standard deduction.... even if itemizing would be higher for one.

If one selects to itemize deductions, then both must itemize deductions... even if the itemized deductions for one is ZERO.

[DoninGA]

When you file MFS and you are required to itemize then you lose the standard deduction, $13,850

[VolvoGirl]

And may I ask why you are filing separate returns?  Sometimes people don't realize the differences between filing  Joint and MFS.

 Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns.  And if you are using the Online version that means using 2 accounts and paying the fees twice.  

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong.  If one person itemizes deductions on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  And if you are in a Community Property state it can be complicated to figure out.

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...

[Joe6801]

Hi, first off, I would like to thank you all for your responses. 

1. We may end up doing married filing jointly. However, if we do that, due to our differing wages, I will not know how much I am entitled to as a refund based on my sole wages if done jointly. It would be the equivalent of extracting separate ingredients from a baked cake. So, in the past, we have done varying scenarios. Both filing separately,  jointly, one with one child, one with both, etc....trying to see what will benefit us most.

In times past, the wife has owed while I had not owed (filing separately), so when we filed together, I knew how much I had helped her with due to me filing jointly with her instead of separate. It is more of an exercise in how much I technically lay claim to and how much my wife can lay claim to. If she argues she has claim to 100% of a refund, I could bring up figures saying, well, if I had had filed separately this is how much I would get. Not that we have that problem but it does not hurt to have proper figured on hand of varying scenarios. Conversely, if she owed and we file jointly, I don't want to be liable for 100% of the owed amount, especially if I would have been entitled to a refund filing separately. 

So in this exercise, I start off with no dependents, filing separate but Turbo Tax forces me to file itemized because my wife will key in such itemization.  Which is fine, but although I personally am not keying in any itemization, my refund jumps from 704 to 1,579 in changing from STD to itemized. I see no legitimate reason for the jump, unless I am missing something.

[VolvoGirl]

I have nothing to add except I hope you are using the Desktop program to do all your returns and tests etc.  

[Joe6801]

I am using the desktop program. Just trying to figure out how a sole w-2, no dependents, with no itemization jumps  amounts in refund by just changing from STD to itemized.

[AnnetteB6]

I agree that given the scenario you described that it doesn't make sense that itemized deductions would be better with no deductions entered into the return.  The only items that are carried automatically to itemized deductions would be your state and local taxes withheld on your W-2.  You might want to review the W-2 to be sure those values are entered correctly.

One more tip since you are using a CD/downloaded version of TurboTax.  If you enter all of the information into a Married Filing Joint return, there is a What-If Worksheet that you can use to easily compare different filing options without needing to go into a separate return to enter the data.  

Go to Forms in the upper right corner of the screen.  Then in the upper left section, click Open Form and enter 'what if' in the forms search box to open the worksheet.

@Joe6801