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lwwyman
New Member

We are taking the standard married filing jointly deduction. Turbo Tax is also giving us state sales tax deduction. Is that correct?

 
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2 Replies

We are taking the standard married filing jointly deduction. Turbo Tax is also giving us state sales tax deduction. Is that correct?

Everyone gets a standard deduction unless you have enough itemized deductions to exceed your standard deduction.   Sales tax is an itemized deduction that goes on Schedule A.      If you do not have enough other itemized  deductions  on Schedule A such as mortgage interest, medical expenses, charity donations, etc., to exceed your standard deduction, entering sales tax will have no effect on your tax due or refund.

**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.**
LindaS5247
Employee Tax Expert

We are taking the standard married filing jointly deduction. Turbo Tax is also giving us state sales tax deduction. Is that correct?

In general, you cannot claim both the federal Standard Deduction and the state sales tax deduction at the same time. If you take the Standard Deduction, you cannot "itemize" deductions. And the sales tax deduction is an itemized deduction. It is possible that TurboTax switched you to itemizing because it resulted in a higher refund. 

 

The TurboTax program automatically chooses the deduction that gives you the best result.

 

Check your Schedule A to see if your total itemized deductions actually do exceed the Standard Deduction amount. If they do not, TurboTax should default to the standard deduction, and the sales tax deduction would not be applicable. 

 

You can also review your Tax Summary. It will allow you to see what is happening on the return and review the calculations. 

 

To do this: 

  1. Click on Tax Tools in the left panel of your TurboTax screen, then click Tools
  2. Choose View Tax Summary and then click on Preview my 1040
  3. If you are using TurboTax Desktop, you can switch to Forms Mode by clicking on Forms at the top right of your TurboTax screen. 
  4. Then scroll down your list of forms on your left to find Tax Summary.

 

Click here for information on changing your deduction.

 

 Click here for Standard Deduction vs. Itemized Deductions: Which Is Better?

 

 Please return to Community if you have any additional information or questions and we would be happy to help.

 

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