Why did my refund not go up after I added turbo tax deluxe to my account?

[alysonh87]

why did my refund not go up after I added turbo tax deluxe to my account?

[DoninGA]

Any tax refund or taxes owed is based on the information that you have entered in the TurboTax program, regardless of which program you are using.

[xmasbaby0]

The amount of your refund is not determined by the software you use.   It is determined by the data you entered into the software.  What kind of income did you enter?   What made you expect your refund to increase when you upgraded to Deluxe?

[rjs]

Upgrading TurboTax Online to Deluxe allows you to claim itemized deductions, which might increase your refund. But it cannot give you the deductions automatically. TurboTax doesn't know what deductions you are entitled to claim until you go through the interview questions and enter the deductions.

Furthermore, itemized deductions will not increase your refund unless your total itemized deductions are more than your standard deduction, after applying any limits that your deductions are subject to. You will not see any increase in your refund until you have entered enough itemized deductions to exceed your standard deduction, after any applicable limits on the itemized deductions.

[xmasbaby0]

If you upgraded to Deluxe in order to itemize deductions:

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. The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2023 Form 1040.

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)