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.
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.
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..
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.
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).
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.
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.
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.