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Level 2
posted Feb 26, 2023 1:44:23 PM

Can someone explain why TuboTax suggests an itemized deduction over standard? My itemized deduction shows as $10,273 and I am married filing jointly. Thanks

I have 2 kids, live in NY.
TurboTax calculates the taxes due/refund within $1,000 of each other, so I guess it's close,  but I can't imagine it's close at all given.
I've got $3,000 in capital losses, and some AMT credit from previous years, but I don't think those even factor in?

0 3 620
1 Best answer
Expert Alumni
Feb 26, 2023 1:57:43 PM

The AMT credit looks like it is the main factor in the reduced itemized deduction (without seeing your return, this is not 100% certain but the AMT will produce the results you describe.)  Since the Standard deduction for Married Filing Jointly is $25,900, removing the AMT credit would probably increase the tax due significantly.

3 Replies
Level 15
Feb 26, 2023 1:56:05 PM

if you're filing jointly what about the amount of your spouse's itemized deductions? 

Expert Alumni
Feb 26, 2023 1:57:43 PM

The AMT credit looks like it is the main factor in the reduced itemized deduction (without seeing your return, this is not 100% certain but the AMT will produce the results you describe.)  Since the Standard deduction for Married Filing Jointly is $25,900, removing the AMT credit would probably increase the tax due significantly.

Level 2
Mar 4, 2023 12:05:37 PM

It is AMT.

I had to compare the 1040 carefully in both options.
Basically, I can deduct ~$5K of AMT carryover credit if I itemize, and ~$1K if I take the standard deduction.

Since tax due is only ~$100 less if I itemize and eat an extra $4K of credit, I think I just take the standard deduction and retain the extra AMT carry over credit.  Even with high interest rates $100 today will take a long time to be worth $4K....