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rigeltag
New Member

Turbo Tax says I have maxed out the federal $10,000 in deductions. But according to the IRS, it is up to $18000 for Head of Household (which i am).

 
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4 Replies

Turbo Tax says I have maxed out the federal $10,000 in deductions. But according to the IRS, it is up to $18000 for Head of Household (which i am).

You are confusing two different things.  Your standard deduction for HOH is $18.000.  There is a $10,000 limit for state and local taxes (state tax, local taxes, property taxes and sales tax).  

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.  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 

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older

Look at line 8 of your Form 1040 to see your standard or itemized deductions.


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Turbo Tax says I have maxed out the federal $10,000 in deductions. But according to the IRS, it is up to $18000 for Head of Household (which i am).

What if line 8, if after entering all my information, is blank.

Turbo Tax says I have maxed out the federal $10,000 in deductions. But according to the IRS, it is up to $18000 for Head of Household (which i am).

Line 8 on 1040 is listed as other income. Am I in the right place?

JulieS
Expert Alumni

Turbo Tax says I have maxed out the federal $10,000 in deductions. But according to the IRS, it is up to $18000 for Head of Household (which i am).

What are you trying to enter or check on?

 

Line 8 of Form 1040 is your total from Schedule 1 and it includes:

 

  • Taxable refunds, credits, or offsets of state and local income taxes 
  • Alimony received 
  • Business income or (loss), from Schedule C 
  • Other gains or (losses) from Form 4797 
  • Rental real estate, royalties, partnerships, S corporations, trusts, etc. from Schedule E
  • Farm income or (loss) from Schedule F 
  • Unemployment compensation 
  • Net operating loss 
  • Gambling income 
  • Cancellation of debt 
  • Foreign earned income exclusion from Form 2555
  • Income from Form 8853 and Form 8889 
  • Alaska Permanent Fund dividends 
  • Jury duty pay 
  • Prizes and awards 
  • Activity not engaged in for profit income 
    Income from the rental of personal property if you engaged in the rental
    for profit but were not in the business of renting such property.
  • Olympic and Paralympic medals and USOC prize money 
  • And anything else that is taxable, but has no other designated entry on your tax return.

 

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