Should I choose Itemized or Standard deduction?
I see I am save more when I choose Itemized deduction, even though its less than standard deduction. Is that normal? And in this case should I choose itemized and disregard recommendation of Turbo Tax? Screenshots below.
- When I choose Standard Deduction.
- When I choose Itemized Deduction.
united-states income-tax tax-deduction
edited 1 hour ago
Chris W. Rea
26.6k1587174
asked 2 hours ago
hmajumdarhmajumdar
24216
add a comment |
I see I am save more when I choose Itemized deduction, even though its less than standard deduction. Is that normal? And in this case should I choose itemized and disregard recommendation of Turbo Tax? Screenshots below.
- When I choose Standard Deduction.
- When I choose Itemized Deduction.
united-states income-tax tax-deduction
edited 1 hour ago
Chris W. Rea
26.6k1587174
asked 2 hours ago
hmajumdarhmajumdar
24216
Look closer, the numbers when you choose to itemize are not in your favor (smaller refund from state and larger payment to IRS)
– Ben Voigt
2 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
2 hours ago
This seems like a flaw in your tax software--it should take the state rules into account when making a recommendation for itemizing deductions.
– prl
2 hours ago
add a comment |
I see I am save more when I choose Itemized deduction, even though its less than standard deduction. Is that normal? And in this case should I choose itemized and disregard recommendation of Turbo Tax? Screenshots below.
- When I choose Standard Deduction.
- When I choose Itemized Deduction.
united-states income-tax tax-deduction
edited 1 hour ago
Chris W. Rea
26.6k1587174
asked 2 hours ago
hmajumdarhmajumdar
24216
I see I am save more when I choose Itemized deduction, even though its less than standard deduction. Is that normal? And in this case should I choose itemized and disregard recommendation of Turbo Tax? Screenshots below.
- When I choose Standard Deduction.
- When I choose Itemized Deduction.
united-states income-tax tax-deduction
united-states income-tax tax-deduction
edited 1 hour ago
Chris W. Rea
26.6k1587174
asked 2 hours ago
hmajumdarhmajumdar
24216
edited 1 hour ago
Chris W. Rea
26.6k1587174
asked 2 hours ago
hmajumdarhmajumdar
24216
edited 1 hour ago
Chris W. Rea
26.6k1587174
edited 1 hour ago
Chris W. Rea
26.6k1587174
edited 1 hour ago
Chris W. Rea
26.6k1587174
26.6k1587174
asked 2 hours ago
hmajumdarhmajumdar
24216
asked 2 hours ago
hmajumdarhmajumdar
24216
asked 2 hours ago
hmajumdarhmajumdar
24216
24216
Look closer, the numbers when you choose to itemize are not in your favor (smaller refund from state and larger payment to IRS)
– Ben Voigt
2 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
2 hours ago
This seems like a flaw in your tax software--it should take the state rules into account when making a recommendation for itemizing deductions.
– prl
2 hours ago
add a comment |
Look closer, the numbers when you choose to itemize are not in your favor (smaller refund from state and larger payment to IRS)
– Ben Voigt
2 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
2 hours ago
This seems like a flaw in your tax software--it should take the state rules into account when making a recommendation for itemizing deductions.
– prl
2 hours ago
Look closer, the numbers when you choose to itemize are not in your favor (smaller refund from state and larger payment to IRS)
– Ben Voigt
2 hours ago
Look closer, the numbers when you choose to itemize are not in your favor (smaller refund from state and larger payment to IRS)
– Ben Voigt
2 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
2 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
2 hours ago
This seems like a flaw in your tax software--it should take the state rules into account when making a recommendation for itemizing deductions.
– prl
2 hours ago
This seems like a flaw in your tax software--it should take the state rules into account when making a recommendation for itemizing deductions.
– prl
2 hours ago
add a comment |
2 Answers
2
active
oldest
votes
From the Maryland tax web site: https://taxes.marylandtaxes.gov/Individual_Taxes/General_Information/What_s_New_for_the_Tax_Filing_Season.shtml
Should I take the standard deduction or itemize? - 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 yours deductions, to see which method causes the lowest overall tax liability.
answered 2 hours ago
prlprl
1,497510
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,500, and you may not itemize in Maryland if you choose the standard deduction on your federal return.
Therefore, choosing to itemize will increase your federal AGI slightly (and therefore your federal tax burden), but will reduce your Maryland AGI by potentially up to $20,000. That would explain the significant difference in results you see.
answered 2 hours ago
Guest5Guest5
1,049410
add a comment |
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2 Answers
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2 Answers
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From the Maryland tax web site: https://taxes.marylandtaxes.gov/Individual_Taxes/General_Information/What_s_New_for_the_Tax_Filing_Season.shtml
Should I take the standard deduction or itemize? - 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 yours deductions, to see which method causes the lowest overall tax liability.
answered 2 hours ago
prlprl
1,497510
add a comment |
From the Maryland tax web site: https://taxes.marylandtaxes.gov/Individual_Taxes/General_Information/What_s_New_for_the_Tax_Filing_Season.shtml
Should I take the standard deduction or itemize? - 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 yours deductions, to see which method causes the lowest overall tax liability.
answered 2 hours ago
prlprl
1,497510
add a comment |
From the Maryland tax web site: https://taxes.marylandtaxes.gov/Individual_Taxes/General_Information/What_s_New_for_the_Tax_Filing_Season.shtml
Should I take the standard deduction or itemize? - 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 yours deductions, to see which method causes the lowest overall tax liability.
answered 2 hours ago
prlprl
1,497510
From the Maryland tax web site: https://taxes.marylandtaxes.gov/Individual_Taxes/General_Information/What_s_New_for_the_Tax_Filing_Season.shtml
Should I take the standard deduction or itemize? - 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 yours deductions, to see which method causes the lowest overall tax liability.
answered 2 hours ago
prlprl
1,497510
answered 2 hours ago
prlprl
1,497510
answered 2 hours ago
prlprl
1,497510
answered 2 hours ago
prlprl
1,497510
1,497510
add a comment |
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,500, and you may not itemize in Maryland if you choose the standard deduction on your federal return.
Therefore, choosing to itemize will increase your federal AGI slightly (and therefore your federal tax burden), but will reduce your Maryland AGI by potentially up to $20,000. That would explain the significant difference in results you see.
answered 2 hours ago
Guest5Guest5
1,049410
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,500, and you may not itemize in Maryland if you choose the standard deduction on your federal return.
Therefore, choosing to itemize will increase your federal AGI slightly (and therefore your federal tax burden), but will reduce your Maryland AGI by potentially up to $20,000. That would explain the significant difference in results you see.
answered 2 hours ago
Guest5Guest5
1,049410
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,500, and you may not itemize in Maryland if you choose the standard deduction on your federal return.
Therefore, choosing to itemize will increase your federal AGI slightly (and therefore your federal tax burden), but will reduce your Maryland AGI by potentially up to $20,000. That would explain the significant difference in results you see.
answered 2 hours ago
Guest5Guest5
1,049410
According to Maryland State Law, the Maryland standard deduction is $2,500, and you may not itemize in Maryland if you choose the standard deduction on your federal return.
Therefore, choosing to itemize will increase your federal AGI slightly (and therefore your federal tax burden), but will reduce your Maryland AGI by potentially up to $20,000. That would explain the significant difference in results you see.
answered 2 hours ago
Guest5Guest5
1,049410
edited 2 hours ago
answered 2 hours ago
Guest5Guest5
1,049410
answered 2 hours ago
Guest5Guest5
1,049410
answered 2 hours ago
Guest5Guest5
1,049410
1,049410
add a comment |
add a comment |
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Look closer, the numbers when you choose to itemize are not in your favor (smaller refund from state and larger payment to IRS)
– Ben Voigt
2 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
2 hours ago
This seems like a flaw in your tax software--it should take the state rules into account when making a recommendation for itemizing deductions.
– prl
2 hours ago