System Not using Itemized deduction and forcing to Standard even with higher itemized

[Anonymous]

I am completing the deductions and I get to the end and Itemized is slightly higher than standard, so it says Itemized will be used.  However the calculation is still using the standard, and in fact when I get to federal review it confirms it's using standard and not the better option.  

No matter what I do even "change my deduction back and forth does nothing.  Screen shot even shows the difference and the amount above is based on standard toggling between them changes nothing.  This is clearly a bug pf some kind that it won't actually use itemized.   It's not a big difference but that's not the point it should correctly honor the use of the itemized and it is in fact not doing so all the way to the end of the process. 

[AmyC]

The key could be in the charitable contributions. The program uses just the standard vs itemized at this point. However, the program then adds the charity $300/ $600 to the standard and realizes that is a better deal than the itemized had seemed. Check your charity and see if that is the difference here.

[Anonymous]

Still makes no sense Charitable on Itemized is over $600 by more than 2X, it literally says Itemized is better and won't use it that's buggy.

[KrisD15]

The Charitable Cash Donation will make the refund larger than taking Itemized Deduction but you won't see that until AFTER you enter the 300 or 600 cash donation which is asked at the END of the review.

If the program "knows" that if you take the Standard Deduction, even if it is a bit lower, once you add 600 as charitable cash donations, you'll be ahead of Itemizing, and it makes it difficult for you to select Itemized. 

If this is your case, when you select Standard, your tax might increase, or refund go down, until the charitable cash donation is entered. 

And that is not asked until the very end of the review. 

If you think this might be the situation you are in, I suggest the following:

Please return to the Deductions & Credits section, scroll down to "Charitable Donations" and DELETE any cash entries you made there. 

(NOTE: Some states allow you to Itemize Deductions when taking the Standard Deduction on the Federal Return. To include the cash charitable donations as an Itemized Deduction on your STATE return, you can enter the donations as "Items" select "I'll value them, select "Other intangible property" enter the description as CASH, since it was, and the amount as the value.)

Go back through the review. The program will ask you for your charity donation again although it may not be until after the state return is finished, at the END of the FINAL REVIEW.  (After the "Tax Summary for 2021" screen)

 Enter the amount up to 600 Married Filing Joint.

The Tax law allows a Taxpayer to claim Charity Donations on their Schedule A or, if using the Standard Deduction, on their 1040 line 12b as an addition to their Standard Deduction amount. 

This amount can be up to 600 for Married Filing Joint, or 300 for all others.

[Anonymous]

So if I am reading this there is a $600 Cash contribution limit in 2021?  Even though actual itemized cash contributions add up to more than the $600?  I guess that is still where I am confused.  You're telling me to delete them then enter $600 at the end of the review.  I've always itemized them and had full benefit but has that actually changed to a $600 cap?  Guess I am still not following if itemized contributions are over $600 why I am forced to just use $600 at the end anyhow regardless of how much we "actually" gave to charity.

[VolvoGirl]

If you take the Standard Deduction you can also take 600 max for Charity.  So the Standard Deduction + 600 can give you a bigger deduction than your itemized deductions.   

See this FAQ for the Itemized vs Standard Deduction confusion.  It's for last year 2020 returns but still applies for 2021.  And 2021 can be 300 single or 600 married.

https://ttlc.intuit.com/community/charitable-donations-deductions/help/standard-vs-itemized-deductio...

For 2021 the standard deduction amounts are:

Single 12,550 + 1,700 for 65 and over or blind (14,250)

HOH 18,800 + 1,700 for 65 and over or blind

Joint 25,100 + 1,350 for each 65 and over or blind

Married filing Separate 12,550 + 1,350 for 65 and over or blind

[RobertB4444]

If you take the standard deduction then IN ADDITION TO THE STANDARD DEDUCTION the IRS offers a charitable donation deduction of $300 for single individuals and $600 for couples filing jointly.  

Your standard/itemized deduction comparison is off by less than a hundred dollars.  So the program recognizes that when it adds $600 of your charitable donations to the standard deduction that is going to be higher.  And it is.