For the first time in 20+ of using Turbo tax... the program has selected Standard Deduction for my wife and I (Married Filing Jointly). We have one dependent. This has caused about $20K in lost deductions. Not sure why this is happening. Also, when I was entering Charitable deductions in prior years the Amount Owed would go down with each entry. This year, when I enter them, the Amount Owed stays the same and when I hit end, it states the Standard Deduction is better for us.
Can anyone offer advice? Thank you!
Sounds to me the program has selected the Standard Deduction over Itemized Deductions so that it will give you the maximum refund. For 2020, the standard deduction for MFJ is $24,800. If your total amount of itemized deduction does not exceed the standard deduction, you will not benefit by taking the itemized deduction. I will suggest you to review your Schedule A to check the amount on line 17.
In the program, when you enter itemized deductions such as mortgage interest, property taxes, medical expenses, charitable contributions, all of these items are added together. Unless the total of itemized deductions exceeds the standard deduction for your filing status, you would not see any change in tax due or refund.