The deductions I have entered into TT are more tha...
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rothberg-jamie
New Member

The deductions I have entered into TT are more than the standard deduction, but TT is suggesting I take the standard deduction. Why?

 
3 Replies
Mike9241
Level 6

The deductions I have entered into TT are more than the standard deduction, but TT is suggesting I take the standard deduction. Why?

have you taken into account the limitations on the various categories of itemized deductions?  medical expenses are deductible only to the extent they exceed 7.5% of your adjusted gross income. taxes are capped at $10,000 ($5,000 if married filing separately). any deductions subject to the old 2% AGI limitation are no longer deductible for federal but may be deductible for state purposes.  mortgage interest may be limited depending on your mortgage balance and when you took it out.  if you are married filing separately both spouses must use either their itemized deductions or their standard deduction.   we can't see your return. 

DMarkM1
Employee Tax Expert

The deductions I have entered into TT are more than the standard deduction, but TT is suggesting I take the standard deduction. Why?

If the standard deduction takes your income down to zero, then there is rarely a need to take the itemized deduction. TurboTax knows this and selects the easiest option to arrive at the same result.  

 

If you qualify for a net operating loss (NOL) meaning the items below are causing a negative income. Then TurboTax would have you continue with the itemized deductions.  TurboTax looks for these items on your return to figure an NOL, if it applies to your return.  Otherwise it is much more simple to stay with the standard deduction.

  • Trade or business,

  • Work as an employee (although not deductible for most taxpayers for 2018 through 2025),

  • Casualty and theft losses resulting from a federally declared disaster,

  • Moving expenses (although not deductible for most taxpayers for 2018 through 2025), or

  • Rental property.

 

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SweetieJean
Level 15

The deductions I have entered into TT are more than the standard deduction, but TT is suggesting I take the standard deduction. Why?

You are asking form TT self-Employed.  If any of those deductions are related to your self-employed, they go on Schedule C, and are not part of your personal deductions.

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