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I spend the time to enter all itemized items but it doesn't affect it. Only amount that it is included in itemized deductions is a standard 10K plut mortgage interest?

 
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2 Replies

I spend the time to enter all itemized items but it doesn't affect it. Only amount that it is included in itemized deductions is a standard 10K plut mortgage interest?

You are posting from Self-Employed.   Do not confuse the business expenses you enter on Schedule C with the itemized deductions you enter on Schedule A.

 

 

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 2020 Form 1040.

 

 

2020 Standard Deduction Amounts

 

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DMarkM1
Employee Tax Expert

I spend the time to enter all itemized items but it doesn't affect it. Only amount that it is included in itemized deductions is a standard 10K plut mortgage interest?

As @xmasbaby0 mentions it is more challenging to exceed the much higher standard deduction.  Itemized deductions in addition to interest paid and taxes paid would only include items like out-of-pocket medical expenses that exceed 7.5% of your adjusted gross income and charitable donations as well as any casualties or losses.  

 

However, itemized deductions entered in the federal interview also transfer to the state interviews.  Some states have different rules for itemized deductions so you may get deductions there as well. 

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