Why does TurboTax Online continue to use the standard deduction, even after I've changed my deduction to itemized?

[Anonymous]

TurboTax Online 2020 has computed that my itemized deductions are greater than the standard deduction ($24,800 for MFJ). And as it prompted, I changed my deduction method to itemized. When printing all forms, there's a Schedule A buried towards the end, and line 17 is definitely larger than $24,800. However, it still enters the standard deduction amount on Form 1040 line 12, and does not include a copy of Schedule A with the other forms to be filed. I have tried to change the deduction method to standard and then back to itemized. I have also tried Clear and Start Over. Neither resolved the issue.

[MaryM428]

In some cases TurboTax has been displaying a message on the screen that it is using the standard deduction when it is actually using itemized deduction.  

You can check this by going to your return in a browser..

1. Tax Tools in the left panel
2. Tools
3. View Tax Summary
4. Then Preview 1040
5. On the 1040 look at line 12.
6. Line 12 will show the amount of deductions actually being taken on your return.

You can ignore the message in the program that looks like it is taking the standard deduction.

All the IRS will see is Line 12 plus Schedule A if you are taking itemized deductions.

[Anonymous]

Mary, thanks for taking the time to look into this issue. However, I am experiencing a different issue from the one you described. When I preview Form 1040, Line 12 is $24,800. This is not the expected amount, as it is smaller than the total shown on Schedule A. I do not meet the criteria for any of the exceptions listed on Form 1040 Instructions, "Standard Deduction".

It gets more interesting. If I increase charitable contributions, such that the total of itemized deductions is greater than $25,100, then this total is entered on Form 1040 Line 12. If the total of itemized deductions is equal to or less than $25,100, then Form 1040 Line 12 is fixed at $24,800.

It would seem that, in this case, Form 1040 is erroneously basing its computation on the standard deduction for TY2021 ($25,100).

[SamS1 · Accepted solution]

Possibly, in a round about way.  Individuals that take the standard deduction in 2020 but made $300 in cash contributions are allowed an adjustment to income of $300.  So, you could imply the $300 contribution adjustment plus the $24,800 standard deduction has raise the standard deduction to $25,100, assuming you made at least $300 in cash contributions in 2020.

[VolvoGirl]

Yes exactly.  You get to deduct up to 300 for charity in addition to the Standard Deduction on 1040 line 10b.  So look there.  $24,800+300 is more than your Itemized Deductions.

[Anonymous]

Sam / Volvo, you're absolutely right. Thanks for helping me twist my head into a pretzel to understand it. Entering $300 on 1040 Wks line 10b effectively raises total (standard) deductions to $25,100.

During review, TurboTax had prompted me to enter a figure on that line. But at the time, I was unable to understand its effect on the whole picture. Now it makes sense.

[mecal2939]

no