TurboTax (2018) insists my husband is filing standard deduction and not itemizing. I keep changing it, but TT keeps changing it back. How do I correct this?

[jomarch24]

No, these are two different questions, but they are connected because you can't take the deduction if you are itemizing.  And yes, you can deduct your foreign housing costs AND your earned income, because the housing costs are part of that income. That's why they have the possibility for you to do both. But all I can get is the exclusion. And I don't qualify for the exclusion because I am self-employed. I get the deduction. but ONLY if you itemize. (Though in this year's edition, even if I could itemize, the option for the deduction and not exclusion isn't offered for some reason, and that's wrong.)

[jomarch24]

Sorry - I mean you can't take the deduction if you take the STANDARD deduction - only if you are itemizing.

[dmertz]

The foreign housing expense deduction is an above-the-line adjustment to income on Schedule 1 line 36, not a Schedule A deduction.  It does not depend on itemizing deductions.

[jomarch24]

Okay, then why can't I do it, why is the option not even part of the interview, and since it isn't, where would I put the numbers? Without going to the form, I mean. Is it not possible to do with this year's edition? Is that the problem? (FWIW, last year, it totally depended on itemizing, so that's curious.)

[jomarch24]

Actually I just looked at Schedule 1 line 36 and nowhere are housing costs included in the calculations - only self-employment tax.

[dmertz]

All I can suggest is that you review the calculation on Form 2555 page 3 to see why TurboTax is not calculating the deduction.  The doubling of the standard deduction for 2018 may be the reason for the difference.

[jomarch24]

That's where it gets dicey. It says I'm not taking it. And I cannot override that. Do you know why?

[dmertz]

If the Foreign Earned Income Exclusion and Foreign Housing Expense Exclusion already add up to the amount of foreign earned income, then there is nothing left to deduct.  Otherwise, I would take TurboTaxMichaelL1's suggestion above to contact live support.

[jomarch24]

I don't mean to be rude but you are not understanding my question here.  I don't want to take the Foreign Housing Exclusion. I do not qualify for the Exclusion because I am self-employed. I want to take the Deduction.  And it's not allowing me to do that. I can deduct the cost of my housing, but the program has a glitch apparently because it won't let me check the box that says "yes, I want to deduct the cost of my housing." I've been doing TurboTax for over 10 years. I've never had this issue.

[dmertz]

What would be the benefit of taking the deduction over the exclusion?

[jomarch24]

I don't qualify for the exclusion. The exclusion is for people who have jobs, who are employees. I am self-employed. Self-employed take the deduction. They aren't allowed to take the exclusion, and employees aren't allowed to take the deduction.

[dmertz]

I understand now, but I'm unable to determine why TurboTax is not automatically selecting the deduction.  I would take TurboTaxMichaelL1's suggestion above to contact live support.

[jomarch24]

Seems like that's the only option left. Thanks so much for your efforts!!!