Should I choose Itemized or Standard deduction?
I see I am saving 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 turbotax maryland
edited 1 min ago
Ben Miller
79.3k19218282
asked 4 hours ago
hmajumdarhmajumdar
25617
add a comment |
I see I am saving 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 turbotax maryland
edited 1 min ago
Ben Miller
79.3k19218282
asked 4 hours ago
hmajumdarhmajumdar
25617
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
4 hours ago
1
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
3 hours ago
Yes, I am using turbo tax btw, they should do a better job with recommendation.
– hmajumdar
38 mins ago
This sort of thing is exactly why I have tax forms in Excel, so I can punch in numbers and play "what if".
– Harper
9 mins ago
add a comment |
I see I am saving 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 turbotax maryland
edited 1 min ago
Ben Miller
79.3k19218282
asked 4 hours ago
hmajumdarhmajumdar
25617
I see I am saving 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 turbotax maryland
united-states income-tax tax-deduction turbotax maryland
edited 1 min ago
Ben Miller
79.3k19218282
asked 4 hours ago
hmajumdarhmajumdar
25617
edited 1 min ago
Ben Miller
79.3k19218282
asked 4 hours ago
hmajumdarhmajumdar
25617
edited 1 min ago
Ben Miller
79.3k19218282
edited 1 min ago
Ben Miller
79.3k19218282
edited 1 min ago
Ben Miller
79.3k19218282
79.3k19218282
asked 4 hours ago
hmajumdarhmajumdar
25617
asked 4 hours ago
hmajumdarhmajumdar
25617
asked 4 hours ago
hmajumdarhmajumdar
25617
25617
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
4 hours ago
1
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
3 hours ago
Yes, I am using turbo tax btw, they should do a better job with recommendation.
– hmajumdar
38 mins ago
This sort of thing is exactly why I have tax forms in Excel, so I can punch in numbers and play "what if".
– Harper
9 mins ago
add a comment |
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
4 hours ago
1
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
3 hours ago
Yes, I am using turbo tax btw, they should do a better job with recommendation.
– hmajumdar
38 mins ago
This sort of thing is exactly why I have tax forms in Excel, so I can punch in numbers and play "what if".
– Harper
9 mins ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
4 hours ago
@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
4 hours ago
1
1
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
3 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
3 hours ago
Yes, I am using turbo tax btw, they should do a better job with recommendation.
– hmajumdar
38 mins ago
Yes, I am using turbo tax btw, they should do a better job with recommendation.
– hmajumdar
38 mins ago
This sort of thing is exactly why I have tax forms in Excel, so I can punch in numbers and play "what if".
– Harper
9 mins ago
This sort of thing is exactly why I have tax forms in Excel, so I can punch in numbers and play "what if".
– Harper
9 mins 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 3 hours ago
prlprl
1,541510
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,250, 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 3 hours ago
Guest5Guest5
1,089410
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thank you for answering.
– hmajumdar
40 mins ago
add a comment |
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2 Answers
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active
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2 Answers
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active
oldest
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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 3 hours ago
prlprl
1,541510
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
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 3 hours ago
prlprl
1,541510
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
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 3 hours ago
prlprl
1,541510
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 3 hours ago
prlprl
1,541510
answered 3 hours ago
prlprl
1,541510
answered 3 hours ago
prlprl
1,541510
answered 3 hours ago
prlprl
1,541510
1,541510
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
add a comment |
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
Well, it folded about a $5500 personal exemption into about a $6500 standard deduction. For people who didn't have $6500 of deductions before, it's a wash, for people who had $6501-12,000 of deductions it's total lose, and for high deducters it's a wash. /golfclap
– Harper
1 min ago
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,250, 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 3 hours ago
Guest5Guest5
1,089410
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thank you for answering.
– hmajumdar
40 mins ago
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,250, 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 3 hours ago
Guest5Guest5
1,089410
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thank you for answering.
– hmajumdar
40 mins ago
add a comment |
According to Maryland State Law, the Maryland standard deduction is $2,250, 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 3 hours ago
Guest5Guest5
1,089410
According to Maryland State Law, the Maryland standard deduction is $2,250, 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 3 hours ago
Guest5Guest5
1,089410
edited 1 hour ago
answered 3 hours ago
Guest5Guest5
1,089410
answered 3 hours ago
Guest5Guest5
1,089410
answered 3 hours ago
Guest5Guest5
1,089410
1,089410
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thank you for answering.
– hmajumdar
40 mins ago
add a comment |
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thank you for answering.
– hmajumdar
40 mins ago
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Is it 2500 or 2250?
– Ben Voigt
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thanks, fixed above. SE aint easy to do on a phone.
– Guest5
1 hour ago
Thank you for answering.
– hmajumdar
40 mins ago
Thank you for answering.
– hmajumdar
40 mins ago
add a comment |
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@Ben, with the standard deduction, it appears to be showing tax due for Md.
– prl
4 hours ago
1
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
3 hours ago
Yes, I am using turbo tax btw, they should do a better job with recommendation.
– hmajumdar
38 mins ago
This sort of thing is exactly why I have tax forms in Excel, so I can punch in numbers and play "what if".
– Harper
9 mins ago