With Standard Deduction FED refund is higher, but with Itemizing TOTAL Refund is Greater (Fed + State)

[mdrdsr]

So, if i choose the standard deduction vs. itemization, the Federal refund is higher than if I itemized. BUT, if I do  do itemized the State refund is much larger. This is for Maryland.  So, even though it recommends standard deduction (FED) if I choose Itemization, my total refund increases dramatically. Does this make sense? Is this even possible? In addition to W2 Income, we have self-employed and use of home deductions.

Thanks 

[MaryK4]

Yes, there are situations where the Maryland itemized deductions may make sense overall.  Per the Maryland State Comptroller: 

"The federal tax reform of 2017 significantly raised the federal standard deduction. Under current Maryland law, if you take the standard deduction the federal level, you cannot itemize at the Maryland level. You may take the federal standard deduction, while this may reduce your federal tax liability, it may result in an increase to your Maryland income tax liability. The Comptroller's Office encourages you to run your income tax returns under both deduction methods, and to compare the results of taking the standard deduction versus itemizing your deductions, to see which method causes the lowest overall tax liability.

Limitation on deduction for state and local tax - Federal tax reform limited the amount you can deduct for state and local taxes. You cannot claim more than $10,000 ($5,000 for married filing separately) for state and local taxes you paid. The new federal limitation impacts your Maryland return because you must addback the amount of state income taxes you claimed as federal itemized deductions. The addback is limited to $10,000 ($5,000 for married filing separately) and is reported on line 17b of the Maryland Form 502. Maryland will accept any reasonable interpretation of the limitation reported on line 17b. A reasonable interpretation of the law includes the following example: you, a single filer, paid $8,000 in real property taxes and $4,000 in Maryland state income taxes, Maryland will accept an addback of state income tax of $2,000 on Line 17b. In this example, the real estate taxes make up $8,000 of your $10,000 limitation and only $2,000 are required to be added back as state income taxes."