I'm married filing jointly. Schedule A has total itemized deductions of $26,400, but it's in Line 12 of 1040 as $27,300. Why is line 12 $900 higher than Schedule A?

[xmasbaby0]

Are you making the common mistake of just adding up all the amounts for your itemized deductions without considering the caps and thresholds that must be met?

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[Mike9241 · Accepted solution]

$27300 is the standard deduction amount and implies one of you is over 65 or blind.  you get the higher of the standard deduction or itemized 

[CatinaT1]

The standard deduction for Married Filing Jointly is:
MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

One of you must be 65 or older and that is why you are getting $27,300 for your standard deduction.

You have the option to use the itemized deduction amount or the standard deduction amount. It is most advantageous to use the higher of the two numbers.

[danielcline1885]

Thanks, that's the answer. I was failing to take into account that since I'm over 65 my standard deduction is $25,900 + $1,400 = $27,300, which is the number appearing on Line 12 of the 1040. Mystery solved!