When would I change the recommended deductible taxes?
It's usually better to deduct whichever tax is larger. However, there are some rare instances when choosing the lower deduction increases your state refund by more than it decreases your federal refund.
For example, some states require that you deduct the same tax on both your federal and state returns. Normally, you would deduct state income tax if it is higher than your sales tax, but your state might allow you to deduct only sales tax, not state income tax. In this case, if you choose the lower sales tax deduction, your state refund may increase by more than the amount your federal refund decreases, which would be more beneficial for you.
If you aren't sure, the software recommended deduction is almost always best.
For example, some states require that you deduct the same tax on both your federal and state returns. Normally, you would deduct state income tax if it is higher than your sales tax, but your state might allow you to deduct only sales tax, not state income tax. In this case, if you choose the lower sales tax deduction, your state refund may increase by more than the amount your federal refund decreases, which would be more beneficial for you.
If you aren't sure, the software recommended deduction is almost always best.
