I made changes to the amount of my ITEMIZED deductions to the amount of $1300 and it made not change to the amount I OWED. WHY?

[denny.hasson · Accepted solution]

Its best to check if you've exceed the max amount you can deduct based on your income.

[russiansheepdog]

I have no early withdrawal to my IRA -and my income has not been reduced to 0.  My itemized deductions are 9000 and some change and the standard is 6000 and some change.  Other ideas?

[russiansheepdog]

how does one check to know if I exceed the max amount based on my income.

[macuser_22]

Only if all itemized deductions exceed the standard deduction will it be of benefit.

For 2017 the standard deductions are:

Single or filing Married Filing Separately - $6,350
Married Filing Jointly or Qualifying Widow(er) - $12,700
Head of Household - $9,350

(If over 65 or blind add $1,250 - $1,550 if filing single or HOH)

Not all itemized deductions count the full amount.  Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

Likewise for miscellaneous deductions such as union dues, work related expenses, etc. are first reduced by 2% of AGI.

For example, If your AGI is $30,000 then 2% is $600 so if your job related expenses were $650, then only $50 would become an itemized deduction.

Also Itemized deductions start to phase out if AGI exceeds $155,650.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions).    Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.)

[russiansheepdog]

I have no medical.  My income is 73K and deductions are 13,220 .  I am itemizing. taxable income is 62K.  I made the change to my home office and nothing - not one cent changed when I upped the amount by entering manually the amount which increased the amount alot of the office verses the standard office allottment..

[macuser_22]

See my post right above your comment.   Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.  What does it say?

[russiansheepdog]

It says based on what you told us,your federal itemized deductions of $9170 are my best option other than the standard of $6350.. Then is says what you are getting:  federal itemized deductions

[macuser_22]

Perhaps your itemized deductions are limited by your income or AMT.  Check line 29 on Schedule A and line 45 on the 1040 form.

[russiansheepdog]

line 29 is 9170 and line 45 is 0

[macuser_22]

Then your 9170 should be on the 1040 form line 40. Changing the amount of itemized deductions should change that and the rest of the 1040 lines 42 to 78 with line 78 being the amount owed. If you change the amount of the itemized deductions what is it that does not change?

[russiansheepdog]

I have tried the standard amount for a home office of a $720 deduction and also calculated exact expense and the amount came to a $976 deduction and it did not change at all the amount i owed in taxes.

[russiansheepdog]

did you get my last comment?

[macuser_22]

Unless you are self-employed and filing a Schedule C, unreimbursed business expenses are a miscellaneous itemized deduction subject to a 2% of AGI floor meaning you first subtract 2% of AGI what is left is a deduction.

For example, if your AGI is $50,000 then only that part of miscellaneous deductions that exceed $1,000 would be deductible.

See line 21 on the Schedule A.

[russiansheepdog]

thank you - my last question is the state is asking for other apportionable expenses in pa schedule ue.  what is that and what are they asking