Tax Year Prior to 2020: Itemized Deductions Greater than Standard Deduction; Itemized not being included

[AbhiG14]

There seems to be an issue with TT 2019 - I was running into similar issue where while adding Mortgage interest, it was showing refund but after I added all the mortgage deductions and it asked about if the mortgage is above 750k or 1M and I answered no, it switched itself to standard deduction and showed me owing money instead of a refund. Even if I change from standard to itemize, it was showing me owing money to IRS as the Total of itemized was less than $24400. I chatted with TT support personnel and walked her through what I was doing and she told me that she had helped another user last week with the same issue - she did not accept that its a bug but it seems like it is. However for anyone running into similar issue, the fix is to g into Forms view instead of EasyStep, look for form that says "Tax & Int Wks" and inside that form, towards the end there is a section called "Mortgage Interest Limited Smart Worksheet" - look for line that says "Does your mortgage interest need to be limited:" If "YES" checkbox is selected,  then click on the "NO" checkbox and that should fix the problem. TT then should recompute and show show you the correct amount of deductions under itemized deductions. You can switch back to EasyStep and should show a refund (if that was the case earlier). 

[lancepoehler]

I also have something similar. Turbotax shows Itemized as the best option and shows what standard vs itemized will be. The value shown in standard is exactly what is at the top of my screen. I select itemized and it is NOT applied. The itemized forms are not included either. I think there is a bug and now I can't summit until this can be fixed.

If it can't be fixed, I need to look into a refund and go with another tool.

[VolvoGirl]

I found this, hope it helps.  There is a new FAQ for the Itemized vs Standard Deduction confusion

https://ttlc.intuit.com/community/charitable-donations-deductions/help/standard-vs-itemized-deductio...

[bwbutler29]

I am seeing the same problem in 2021. The deduction value in Schedule A is higher than the standard deduction but the 1040 form Line 12a is still showing standard deduction.

[VolvoGirl]

How much higher is the schedule A?  This year for 2021 you can add $600 charity deduction on 12b in addition to the Standard Deduction.  

[Critter-3]

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550  (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

Legally Blind + $1350

If it's giving you the Standard Deduction and  not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in itemized deductions, choosing.  It should highlight that in the list, click on GO

Then 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.

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

[stephentremel1]

I tried that solution and it still reflects the standard deduction of $27800 vs itemized of $28172  The check schedule does not show any itemized deduction just the negative excess RE tax thus the recommenbdation for standard deduction.  Not sure why?

[Critter-3]

FYI ... you get the standard deduction + 300 (or 600 married) of charity deduction so 27,800 + 600 = 28,400 which is more than the 28,172 if you are married and that is why they are giving you the standard deduction.  

[VolvoGirl]

@stephentremel1   See this FAQ for the Itemized vs Standard Deduction confusion.  It's for last year 2020 returns but still applies for 2021.  And 2021 can be 300 single or 600 married.

https://ttlc.intuit.com/community/charitable-donations-deductions/help/standard-vs-itemized-deductio...

[stephentremel1]

Thank you .  Turbo didn't populate that $600   I had to input my self

[jaglasstetter]

I am forced into standard deduction and have no options!!

[VolvoGirl]

If it's giving you the Standard Deduction and  not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in  itemized deductions, choosing.  It should highlight that in the list, click on GO

Then 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.

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

[EMDLH18]

I found this to be a software bug with the desktop version associated with the Step-by-Step process.

My situation:

• Using Turbo Tax 2021 Premier desktop version with the latest updates as of 3/27/2022.
• I am married filing separately (MFS).
• Explicitly chose itemized deductions during the Personal Info section since my spouse is itemizing as well.
• The total on my Schedule A after filling out all the deduction information was $12800.
• No home mortgage deductions, but made charitable contributions.

What happened:

• Turbo Tax imported $12555 (the standard deduction value for MFS) into line 12a on Form 1040.
• The final check at the end of the Federal Taxes section kept taking me back to fill out line 12b of my 1040 (Charitable contributions if you take the standard deduction).
• Could not manually edit line 12a Form 1040 to match my Schedule A total.
• Explored the links between the different forms (i.e. Form 1040 to Schedule A) and found the proper information was populated in the supporting forms and the forms were properly linked; however, it just did not transfer to Form 1040.
• None of the bug fixes/workarounds in this thread worked.

For MFS any value less than $12850 (the standard deduction + $300 max charitable contributions) may prompt the software to import the standard deduction in line 12a of form 1040. The issue is the Step-by-Step section that tells the software to explicitly take the standard or itemized deduction contains a software bug that unchecks/doesn't check the proper box in the Info Wks form.

Solution:

• Navigate to the Info Wks form and ensure you check one of the boxes in the Standard Deduction/Itemized Deductions portion of Part VI (Additional Information for Your Federal Return).