Should I itemize?

[lambchop2go]

I was working on my tax return and I filled in all my info: my new home, my new car, my W2, and my donations. Then when I was about finished, it asked if I wanted to itemize. When I clicked no, my federal tax return went from about $2,400 to about $450. My state tax return went from like $400 to $160. Does that mean if I itemize, I will get those amounts that were showing up on the side prior to hitting no to itemizing?

[IreneS]

Yes.    If your itemized deductions are larger than the standard deduction for your filing status, it is more beneficial to itemize.

The standard deductions are:

• Single - $6,300
  
• Married Filing Jointly - $12,600
  
• Married Filing Separately - $6,300
  
• Head of Household - $9,300
  
• Qualifying Widow(er) - $12,600
  

[lambchop2go]

When I first started the tax return process, it didn't ask if I was itemizing or standard deduction, so I automatically assumed I was doing standard. As soon as I entered my home information and car information, the return increased drastically and then as soon as I hit no to itemized, it went down drastically, so does that mean it defaults as itemized when you start?

[IreneS]

TurboTax automatically takes the route that is MOST beneficial to you, whether it's standard deduction or itemized.  

TT asks you the question about itemizing, because some people don't have a choice......it they're married and filing separately they have to take the same type of deduction as the other spouse.