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kellymcnewhaven
New Member

Why do my itemized deductions show $0?

The attached file shows my confusion.  Why all of the "$0"s and MUCH lower total deductions for me in 2018 vs 2017?  Seems like my deductions far exceed the new $24,000 standard deduction?  Am I not adding up deductions correctly?  Bottom line is TurboTax is telling me I owe over $4,200 in Federal Tax.  

We did earn $25k more this year (total of $145k taxable), but we also paid over $12k in federal taxes?  So why do we still owe so much?  

1 Best answer

Accepted Solutions
KarenJ
Intuit Alumni

Why do my itemized deductions show $0?

The difference you see between 2017 exemptions and deductions and 2018 exemptions and deductions is due to the changes from the new tax law, the Tax Cuts and Jobs Act of 2017.

  • The personal exemption of $4,050 for the taxpayer, spouse and dependent has been suspended from 2018-2025.
  • The standard deduction has increased for married filing jointly to $24,000.

Several changes have been made to itemized deductions, see below for a few of them:

  1. State, local, property, and sales tax (SALT) deduction – capped at $10,000 ($5,000 if married filing separately)
  2. Mortgage interest – capped at interest on $750,000 of mortgage debt.
  3. Home equity loan or line of credit -- interest is deductible only if loan was used to buy, build, or substantially improve your home and your total mortgage debt doesn’t exceed $750,000.
  4. Miscellaneous deductions subject to the 2% limit – suspended.
  5. Personal casualty and theft losses – suspended (with exceptions).

Due to all the changes to itemized deductions, your standard deduction is now greater than your allowable itemized deductions.

Please see the TurboTax FAQ below on How will tax reform affect my 2018 federal taxes:

https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return







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1 Reply
KarenJ
Intuit Alumni

Why do my itemized deductions show $0?

The difference you see between 2017 exemptions and deductions and 2018 exemptions and deductions is due to the changes from the new tax law, the Tax Cuts and Jobs Act of 2017.

  • The personal exemption of $4,050 for the taxpayer, spouse and dependent has been suspended from 2018-2025.
  • The standard deduction has increased for married filing jointly to $24,000.

Several changes have been made to itemized deductions, see below for a few of them:

  1. State, local, property, and sales tax (SALT) deduction – capped at $10,000 ($5,000 if married filing separately)
  2. Mortgage interest – capped at interest on $750,000 of mortgage debt.
  3. Home equity loan or line of credit -- interest is deductible only if loan was used to buy, build, or substantially improve your home and your total mortgage debt doesn’t exceed $750,000.
  4. Miscellaneous deductions subject to the 2% limit – suspended.
  5. Personal casualty and theft losses – suspended (with exceptions).

Due to all the changes to itemized deductions, your standard deduction is now greater than your allowable itemized deductions.

Please see the TurboTax FAQ below on How will tax reform affect my 2018 federal taxes:

https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return







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