You'll need to sign in or create an account to connect with an expert.
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)
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Simonr78248
New Member
annie8508
Level 1
nrp13
Level 1
nrp13
Level 1
koalamiche
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.