Why is TurboTax directing me to take the standard deduction when my total itemized deductions are greater?

[stick703]

On the last page of the "Deductions

[macuser_22]

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.

[VolvoGirl]

How much are your Itemized Deductions?  The questions I've seen turn out that the Standard Deduction + the extra 300 for charity is more than your Itemized Deductions .  Check 1040 line 10b.

[stick703]

Great.  I'm married, filing jointly.  That gives $24.8k for the standard deduction.

But my itemized deductions are $34k based on what I calculate.  The issue is that TT does not seem to be calculating my mortgage interest deduction correctly.  It shows just $9.6k for this, even though I've entered three different 1098s with a total of $24k in deductible interest.

[stick703]

I think I found the problem, in small print at the top of the page: https://ctg-apps.intuitcdn.net/browserclient/8.6.54/L2bkqv2bR

This is not well done from a usability standpoint.  It's probably going to cost people money.  I'm sure I'm not the only person who received 3 1098s and entered each one, instead of adding them together as described in this side note.

[stick703]

Also, the first screen when entering a 1098 states "If you have more than one lender, we'll walk through them one at a time."

So which is it?  This is a confusing flow.

[macuser_22]

I have heard of some issue with multiple 1098's.

You might want to contact customer support.

There is no single published number because it changes contently depending on the nature of the call and agent availability. Following the link below will either give a current number for you to call or take your number for a callback.

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number