My net refund is larger (state and federal combined) if I itemize but the TurboTax software recommends I use the standard deduction. Why is that?

[AnnetteB · Accepted solution]

It is good that you noticed that your combined Federal and state is better when you itemize instead of use the standard deduction. 

TurboTax most likely only considers the Federal return when making the recommendation to use the standard deduction.  Because you have to complete the Federal information completely before proceeding to your state returns, the comparison may not be made at the end of the state returns as well.  That would be a great recommendation as a program enhancement.