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VWguy
New Member

Why won't TurboTax transfer my Charitable Contributions and Schedule C deductions to bring me (well) over the standard 24K deduction?

Why won't TurboTax transfer my Charitable Contributions and Schedule C deductions to bring me (well) over the standard 24K deduction? Although I seem to be way over the 24K (excluding excessive SALT, etc.), TurboTax keeps insisting that I am better off with the standard deduction. But a review of my allowable itemized deductions (close to 30K) suggest otherwise.

Even in the Review, TurboTax refuses to add up charitable contributions and Schedule C losses, as if they do not exist.

For some reason, the following part of my question was not answered: IF Charitable Contributions put me over the 24K deduction threshold, why did TurboTax not add the Charitable Contributions amount to my deductions? And why does TurboTax continue to insist that my standard 24K deduction is preferable to my 24-plus-K itemized deduction containing Charitable Contributions?

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1 Reply
JulieCo
New Member

Why won't TurboTax transfer my Charitable Contributions and Schedule C deductions to bring me (well) over the standard 24K deduction?

Schedule C expenses are not itemized deductions.  They are included on your return whether you itemize or take the standard deduction.  Therefore, the Schedule C deductions are not included in the itemized deduction total when determining whether to use the standard deduction or not.

If you are referencing job related expenses (for a W-2 employer) that were part of miscellaneous itemized deductions, they are not allowed as a deduction on the federal return for 2018 as the miscellaneous deductions, which were an itemized deduction subject to the 2% floor rule, have been suspended for the years 2018 to 2025 as part of the Tax Cuts and Jobs Act of 2017.  Some states are still allowing the job-related expenses to be include with itemized deductions so that is why the option to record them on your return in TurboTax is there.  Therefore, if you are including job-related expenses into your itemized total, you need to know they are excluded on the federal return and that is why the recommendation is there for the standard deduction.

See more on the Tax Reform changes affecting 2018 below:

https://ttlc.intuit.com/replies/6971774



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