Turbotax is saying that the best option is for me to take the Standard Deduction this year...
When I go back and look at my deduction categories for 2020, here is what I find:
Gifts to Donations and Charity: $2,992
Unreimbursed Employee Expenses: $1,141
Mortgage Interest: $14,084
Real Estate Taxes: $5,575
State and Local Income: $6,113
Vehicle Registration Fees: $107
State and Local Taxes Greater than $10,000: ($1,795)
When I go to the next page where it gives me the option to change my deduction to the Itemized approach, it is saying that my total is only $21,271:
Can anyone tell me why Turbotax is only finding $21,271 in itemized deductions instead of the $28,217 I'm adding up myself?
Property/state/local taxes are subject to a $10,000 cap. Unreimbursed employee expenses are no longer allowed under law for Federal, but may be for some states. But, in general, if the Standard Deduction already lowers your taxable income to zero, then that is used.
just to tease that out a little more, the $28,217 has to be reduced by $1141, which is not tax deductible, so it really adds up to $27076.
what is on Line 11 of your Form 1040? Is is $21, 271?