How do I switch to itemized deductions?
We automatically select the deduction that gives you the best outcome on your federal taxes. Most 2020 federal tax filers will be better off with the standard deduction versus the itemized deduction.
In TurboTax, you can always switch to a different deduction. However, if you and your spouse are filing separate federal returns, both of you must take the same deduction per IRS rules.
Tip: It's best to hold off on switching until after you've finished going through the Deductions & Credits section. That way you can get an accurate picture of how both deductions affect your bottom line. Also, keep in mind that switching to the other federal deduction may impact your state tax return.
Hi Ray. Thanks for your quick reply.
That is exactly what I am doing, but it will not switch to Itemized Deductions, it just stays in a loop telling me that Itemized deductions would be the best for me. When I do the review, I am still only seeing the Standard Deduction.
What is the amount of your Itemized Deductions versus Standard?
My Itemized amount is 24882 and Standard is 24800. Not a huge difference but adds a bit more to my refund with Itemized.
Did you enter any Charity Deductions? You get to deduct up to 300 for charity in addition to the Standard Deduction on 1040 line 10b. Look there. So 24,800+300 is more than your Itemized Deductions.
Thanks! That was the problem. Seems like there is a glitch with the 300 CARES act deduction because my Itemized and Standard Deductions are so close. Even when I put that in, when I get to the Deductions and Credits review screen it is still suggesting that I Itemize my deductions and shows I should get a slightly higher refund, but it doesn't work.
The standard deduction for tax year 2020 is $24,800 for married filing joint, $12,400 for single, & $18,650 for Head of Household. The standard deduction reduces the amount of income you have to pay taxes on. You can either take the standard deduction or itemize (Schedule A).
If the amount on line 12 of 1040 was over the amount of your standard deduction, then Turbo Tax will select itemized deductions on your retrun, Otherwise, standard deduction will automatically be the other option .
Because this is a **bleep** software that we are hooked to it. I have the same issue to see which one will give me more deduction. One easy way will be to start a new return. When TurboTax does the computation, it does not take into account the state return and just base it selection on Federal. I would really like to go to a professional rather than using TurboTax.