What do I do if my itemized deductions are more than my adjustable gross income?

[macuser_22]

You don't "do" anything.   Deductions can only reduce your AGI to zero so more deductions would be o no benefit. if they are allowable deductions.

For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.


2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

[cabrahams]

If the bulk of the itemized deductions are charitable donations, can they be a carry forward to the following year? For 2021 they are allowed up to 100% of AGI. I would like to either elect to keep at 60% (IRS publication 536 says ok to do this but Turbo tax doesn't show option) or carry forward to 2022. Appreciate any help.

[DMarkM1]

You are correct you can elect to keep the standard charitable donation limit and carry over the excess to next year.  In TurboTax desktop and online versions once you have entered your donations you will click "Done with charitable donations".  The next page is titled "Donation Limits."  There you will select "Yes" and you will have the option to choose the standard "60/50 limit" and the excess donations will be carried over to next year.