TurboTax Premier Confused About Standard/Itemized Deductions

[jdw1972]

TurboTax seems to be getting confused about whether I'm itemizing deductions. When I click "Done with Deductions", I get the following message:

Then, after I click "Continue", I get the following:

Finally, when I'm done entering data and go through the Smart Check, it it informs me that there's an error here:

I'm unclear as to how to proceed here: TurboTax seems to have filled out some parts of my tax forms assuming that I'm taking the standard deduction, and some parts assuming that I'm itemizing.

[extaxgirl · Accepted solution]

Without seeing your Schedule A, I going to assume that your contributions of $2192 is part of the itemized deductions of $25502.  IRS now lets you take a deduction of up to $600 for contributions if your filing MFJ and use the standard deduction for MFJ.  In your case it looks like $600 added to the $25100 standard deduction would give you a deduction of $25700 which is better than taking the itemized deduction.  Try entering 600 where you are seeing the yellow box at 12b.  Then you should see 12c change to 25700.

[JillS56]

The error message you are getting is not for the standard deduction vs. itemized deduction.   You are entitled on an MFJ return to claim up to $600 when claiming the standard deduction or $300 for Single, Head of Household, or MFS.   TurboTax wants you to enter either the $300 or $600.  

As for as why it said itemized was better and then gave you the standard, I cannot answer as I cannot see your return.   You could go back through the return and see if you can see anything that changed.

[jdw1972]

Thanks - that seemed to do the trick. I think the program was confused by the fact that my itemized deductions were greater than the standard deduction, but smaller than the standard deduction + the $600 I was allowed to take for charitable donations.

When I went back through the deductions screen and told it to take the standard deduction even though it was lower than the itemized deduction, it correctly filled in $600 in box 12b and let me complete my return.

[extaxgirl]

☺️

[goldie9]

Have you updated your turbo tax software?

Based on the screen shots you provided, it should be entering the $ amount for your "Itemized Deductions" as this amount is higher, and not the amount it is showing on the tax form.  On your last screen shot where is states "What is getting: Federal itemized deductions" you have to "continue" at the bottom of the page and move to the next screen.  At that point it should be the correct amount on your 1040 form.  You can also manually adjust your tax from with the "Itemized" amount.  Just make sure that the same amount is on your 1040 form and you chose to "Itemize"

[AmyC]

Correct. The program determines itemizing is better for you when you complete the deductions and credits section. Once you move to the review section, the program realizes that the standard deductions plus charity is greater than the itemized amount and chooses to use that instead.

[jdw1972]

Yeah, the problem was that it didn't fill in the $600 automatically, which caused it the final check to fail. It seemed like it partially switched back to the standard deduction, but didn't finish the job.

Telling it explicitly to use the standard deduction even though the itemized value was higher seemed to do the trick. I suspect I could have just plugged in the $600 manually, as well.