Most taxpayers claim the standard deduction, but in some situations, itemizing deductions can provide a larger tax benefit. Itemized deductions allow you to deduct certain qualifying expenses, such as mortgage interest, state and local taxes, charitable contributions, and certain medical expenses, on Schedule A (Form 1040).
The good news is that you don't have to do the comparison yourself. Our software automatically calculates both your standard deduction and your itemized deductions and applies whichever method results in the lower federal tax liability.
How to Enter Itemized Deductions
To enter or review your itemized deductions, follow these steps:
- Federal
- Deductions
- Select My Forms
- Itemized Deductions
From there, you can enter deductible expenses such as:
- Mortgage interest
- State and local taxes
- Real estate and personal property taxes
- Charitable contributions
- Qualified medical and dental expenses
- Certain casualty and theft losses, if applicable
How to Compare Standard vs. Itemized Deductions
If you'd like to see which deduction method provides the greater benefit, follow these steps:
- Federal
- Deductions
- Select My Forms
- View Standard vs. Itemized Deductions
This screen shows both deduction amounts and indicates which option the program will use on your return.
Forcing the Program to Use Itemized Deductions
In most cases, it makes sense to claim whichever deduction is larger. However, there are situations where you may want to itemize even if your itemized deductions are lower than your standard deduction.
For example:
- You're filing Married Filing Separately (MFS) and your spouse is itemizing deductions. In this case, the IRS generally requires you to itemize as well.
- You have another tax-planning reason for choosing itemized deductions.
To force the program to use itemized deductions:
- Federal
- Deductions
- Select My Forms
- Itemized Deductions
- Choose to Itemize or Take the Standard Deduction
- Force to Use Itemized Deduction