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caltex221
New Member

My "itemized" deductions = 32,398.* Std ded = 26,600. . Why std. ded. better? *[Prop tax 3979; Charity 9179; Medical 15,979; sales tax 3261]

 
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Rachel_W
Expert Alumni

My "itemized" deductions = 32,398.* Std ded = 26,600. . Why std. ded. better? *[Prop tax 3979; Charity 9179; Medical 15,979; sales tax 3261]

Based on the information provided in your question, I am thinking that the reason the Standard Deduction of $26,600 is better than Itemized Deductions for your return has to do with the 7.5% floor applied to Medical Expenses.  The Medical Expenses reported on Schedule A are reduced by 7.5% of your income to arrive at the deductible portion.

For example, if your Adjusted Gross Income is $100,000 and your out of pocket medical expenses are $15,979, this amount is reduced by $7,500 [$100,000 x 7.5%= $7,500].  Therefore, your deductible medical expenses on Schedule A would be $8,459  [$15,979 - $7,500 = $8,459].

If this doesn't apply to your situation, please comment below so that I can assist you further.

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Rachel_W
Expert Alumni

My "itemized" deductions = 32,398.* Std ded = 26,600. . Why std. ded. better? *[Prop tax 3979; Charity 9179; Medical 15,979; sales tax 3261]

Based on the information provided in your question, I am thinking that the reason the Standard Deduction of $26,600 is better than Itemized Deductions for your return has to do with the 7.5% floor applied to Medical Expenses.  The Medical Expenses reported on Schedule A are reduced by 7.5% of your income to arrive at the deductible portion.

For example, if your Adjusted Gross Income is $100,000 and your out of pocket medical expenses are $15,979, this amount is reduced by $7,500 [$100,000 x 7.5%= $7,500].  Therefore, your deductible medical expenses on Schedule A would be $8,459  [$15,979 - $7,500 = $8,459].

If this doesn't apply to your situation, please comment below so that I can assist you further.

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