client has larger than standard deduction-but program still using standard

Forum|Forum|5 years ago
April 10, 2021
7 replies
31 views

My client has standard deductions of $24,861 - but program is using standard $24,800

Why?

ProSeries Professional

This topic has been closed for replies.

dkh

Level 15

You've got $24861 on line 17 of Schedule A but program is only taking Std deduction of $24800.

Have you by chance checked the box on Federal Information Sheet Part X - Use Std Deduction even if less than Itemized?

sjrcpa

Level 15

Is it using $24,800 std deduction plus $300 charitable contributions?

The more I know the more I don’t know.

D

DebiHCPA

Level 4

This is what is happening. The program is correctly calculating that a $24,800 SD PLUS a $300 above the line charitable contribution deduction is better taxwise than a $24,861 itemized deduction.

Be careful - if you are also filing a state return where the standard deduction is very small (like Maryland) if you are that close you might want to force itemizing thereby giving you more itemized deductions for the state. That number is just too close to not see which is more beneficial.

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