When would I want to change the recommended federal deduction?
When you enter your federal Itemized Deductions, we compare them to your federal Standard Deduction and automatically give you the best possible deduction on your federal return.
Choosing the smaller federal deduction usually decreases your federal refund. But occasionally, choosing the smaller federal deduction increases your state refund. In this situation, you'll need to decide which federal deduction gives you the best overall results; standard or itemized. If choosing the smaller deduction increases your state refund more than your federal refund decreases, you'll want to choose the smaller deduction. This is uncommon.
Example: Your federal Itemized Deductions are only a little less than your federal Standard Deduction. When you choose to use your Itemized Deductions your federal refund decreases by $100. But by using your federal Itemized Deductions you're now able to use your state Itemized Deductions on your state return, and your state refund increases by $300. Since your overall results increase by $200, you'll want to choose to use your federal Itemized Deductions even though they're less than your Standard Deduction.
Choosing the smaller federal deduction usually decreases your federal refund. But occasionally, choosing the smaller federal deduction increases your state refund. In this situation, you'll need to decide which federal deduction gives you the best overall results; standard or itemized. If choosing the smaller deduction increases your state refund more than your federal refund decreases, you'll want to choose the smaller deduction. This is uncommon.
Example: Your federal Itemized Deductions are only a little less than your federal Standard Deduction. When you choose to use your Itemized Deductions your federal refund decreases by $100. But by using your federal Itemized Deductions you're now able to use your state Itemized Deductions on your state return, and your state refund increases by $300. Since your overall results increase by $200, you'll want to choose to use your federal Itemized Deductions even though they're less than your Standard Deduction.
