Is it legitimate to change to standard deduction when spouse is itemizing?

[MikeDemler]

When one begins creating a return in TurboTax, after selecting Married Filing Separately, TurboTax asks if I or my wife claim itemized deductions. That check box comes with a clear statement... 

Note:  You both must itemize deductions on each of your returns...

Then why, when completing the return, does the software select the deduction method that produces the greater refund, ignoring the filing status I selected?

This software is so flawed!!!

[Mike9241]

it would seem you are right. both must use the same method so if one itemizes both must itemize. if one itemized and one uses the standard deduction then the one using the standard will be required to change  

[xmasbaby0]

If you are filing MFS you have to tell the software if you and your spouse will itemize or use standard deduction and you are required to both file the same way.   Not one of each.   Even if it is not to one spouse's advantage to itemize.   Those are the rules.  (And those rules contribute to filing separately  often being the worst way to file.)  If your spouse itemized then you have to itemize too----even if you have to force it.

HOW TO FORCE ITEMIZED DEDUCTIONS

https://ttlc.intuit.com/questions/1900142-how-do-i-change-from-the-standard-deduction-to-itemized-or...

[LindaS5247]

When filing separately, both spouses must take the standard deduction or both must itemize their deductions. One spouse cannot itemize their deductions while the other spouse takes the standard deduction.

Per the IRS:

If you and your spouse file separate returns and one of you itemizes deductions, the other spouse must also itemize, because in this case, the standard deduction amount is zero for the non-itemizing spouse.

Click here for frequently asked questions for the IRS.

Click here for an article on filing taxes separately or jointly.

[VolvoGirl]

Is one of you claiming Head of Household?  There are special rules

For MFS See pub 501 page 7 special rules # 11, and page 22 Persons not eligible for the Standard Deduction  https://www.irs.gov/pub/irs-pdf/p501.pdf

The rule for MFS says you MUST Itemize if your spouse Itemized.

The rule for HOH says you do not have to Itemize if your spouse does.

The person filing HOH does not have to itemize unless they want to, BUT the person filing MFS MUST itemize if the HOH Spouse does.

[MikeDemler]

@LindaS5247

This was intended as a rhetorical question.

Intuit needs to fix this bug.  I've seen it in previous editions. 

But instead, in the final steps TurboTax always changes to the largest refund (or lowest taxes owed), regardless of the filing status that users declared when they started their return. 

[joann44]

@MikeDemler if you answer the questions properly and are filing MFS it does not change it back. Double check your actual tax form if you think that it is doing that and you'll see where it doesn't.  (unless you change some answers)

[VolvoGirl]

@MikeDemler   I've been in the forum for over 10 years and don't recall anyone ever reporting this or any questions about MFS Standard Deduction or itemized.

[MikeDemler]

Well @VolvoGirl... I've encountered so many issues like this in TurboTax (I'll be filing another after this) that I can't recall if I reported this one or not. Nevertheless, it first came up when the standard deduction was increased. and the SALT deduction was decreased. So.. 2018? 

[MikeDemler]

I'm sorry @Joan44 , that is incorrect and I can prove it. (See my screen shots below). 

I've gone through this repeatedly.. and it happens every time during my final Federal  check.  Perhaps you haven't seen it because it only happens when the standard deduction is greater than your

Schedule A itemized deductions.

Here are the steps to repeat it:

1 - select I or my spouse will itemize deduction

2 - complete entering deductions, and during the final check, TurboTax says "We've chosen itemized deductions for you".  (That's the 1st indication of a problem, because the program shouldn't be choosing for me after I instructed it what to do.)

3 - Click Continue.. my Federal refund increases. But immediately click back, and TurboTax says it's still using itemized.  THat is wrong.. it changed but you can't see that yet.

4 - Complete the Federal check.. go back to the final Check Deductions and Credits step... and TurboTax shows "The Standard Deduction is Right For You!"

[LindaS5247]

You can always switch to a different deduction. However, if you and your spouse are filing separate federal returns, both of you must take the same deduction per IRS rules. (Only TurboTax Deluxe and above can handle itemized deductions).

To correctly file your taxes and comply with IRS Rules, you must select the same deduction that your spouse is using.  And file that way.

If you feel that the program is flawed, are you saying you can not get it to let you choose itemizing and your wife is itemizing , that it is making you take the standard deduction?

What version of TurboTax are you using?

For TurboTax Online:

1. Open your tax return and select Federal, then Deductions & Credits
2. Scroll to the bottom and select Continue
3. Answer all the questions, until you get to the screen Based on what you just told us, the Standard Deduction is best for you or Based on what you just told us, itemizing deductions is best for you.
4. On that screen, select Change my deduction
   • You'll see a pop-up showing how much each deduction is worth
5. If you want to change your deduction, select it and Continue
6. If you don't want to change your deduction, select Cancel

For TurboTax Download/CD:

1. Open your return and select Federal Taxes
   • If using Home & Business, select Personal
2. Select Deductions & Credits
3. When asked how you want to enter your deductions and credits, select I'll choose what I work on
4. Scroll all the way to the bottom of the Your 2022 Deductions & Credits screen and select Done with Deductions
5. Continue until you see The Standard [or Itemized] Deduction is Right for You!
6. Select Change my deduction and choose which one you'd like
7. Select Continue to apply any changes

If you can not properly file your tax return, I suggest you contact TurboTax Support by clicking here.  You can talk to a Live Agent who can share your screen and see what is going on.  This would be the fastest way to remedy your issue.  

You can also come back to TurboTax Community and state that you can not properly enter your deduction in TurboTax and someone can provide you with information to get a token number for you so that the issue can be looked at.

[MikeDemler]

@LindaS5247 

Yes, I'm well versed in the tax rules and procedure. The problem is that your software ignores them, as I documented elsewhere in this thread.  (I'll reinsert the screen shots below, from TurboTax Premier on Windows.)

A user using the Married Filing Separately procedure instructs TurboTax as to whether their spouse is itemizing deductions at the very beginning of the step-by-step process. The software shouldn't change that, but it does, because (I believe) Intuit's intent is to deliver the highest possible refund (or lowest tax bill).  Sorry folks, the IRS rules override that intent! 

[LindaS5247]

I have used TurboTax for nearly 30 years, and I worked for the IRS for 33 years.  I have never known TurboTax to subvert any tax laws. So let's figure this out.

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the  directions below:

TurboTax Online:
 

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear. Select Tools  
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

[MikeDemler]

Dear @LindaS5247,

I've been using TurboTax even longer than you. And I have to say, I just love it when someone (and  you're the 2nd here) expresses doubt in something because they haven't personally experienced it.   Hmmm... do you think  maybe I can come up with some other things I've experienced that you haven't? Geez!!! 

Back to the subject at hand.  As I've said previously, this is not the 1st time I've seen this. It likely started happening when the personal exemption was increased, in 2018.   And I've been asked to produce a test case before. If Intuit would like to compensate me for that work, I'll take it under consideration. I've provided more than enough detail on how to reproduce it. 

[teedeecee]

This happened to me as well. I got married in 2022 and told software I needed to itemize. Then at end it changed it to standard. I thought this was wrong at the time and purchased the audit protection because of it. I filed my taxes, but continued to search for confirmation because I still thought it was wrong. I finally found this thread after filing and am now having to file an amended return. Not impressed.