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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.
I figured it out! I had forgotten about the extra $300 that could be deducted for charitable contributions when using the standard deduction. My itemized list was $27,615, which is greater than the standard deduction of $27,400, but less than the $27,700 total after adding the $300 allowed for charitable contributions. I didn’t catch it at first because the system kept showing it was more advantageous to use itemized deductions.
I finished my return and it has been delivered to the IRS.
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