Another TurboTax through Vanguard Question

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FrugalInvestor
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Another TurboTax through Vanguard Question

Post by FrugalInvestor »

I'm using the free Federal (Deluxe) version that I qualify for through Vanguard.

Can I calculate the tax with my itemized deductions and then with the standard deduction and see the difference?
Norris
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Post by Norris »

TurboTax will determine which benefits you more and will automatically go with it. Just be sure to cover all the steps and answer all questions.
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FrugalInvestor
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Post by FrugalInvestor »

Norris wrote:TurboTax will determine which benefits you more and will automatically go with it. Just be sure to cover all the steps and answer all questions.
Actually, for reasons too long to get into here I'd like to see how much difference, if any, there is between the two (itemized and standard deductions). If it happened to to small I may want to go with the non 'preferred' option. This is why I'm asking the question.
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fishnskiguy
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Post by fishnskiguy »

Yes you can. Simply go through the questions for itemized deductions and when done, look in the upper right corner to see how much is due or will be refunded. Jot down that number.

Then go back and "lie" when answering the itemized deductions questions, and enter zero for mortgage interest, property tax, ect. TT will kick you into the standard deduction. Now look to see how much is due or refunded, and compare to the number you wrote down.

Chris
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FrugalInvestor
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Post by FrugalInvestor »

fishnskiguy wrote:Yes you can. Simply go through the questions for itemized deductions and when done, look in the upper right corner to see how much is due or will be refunded. Jot down that number.

Then go back and "lie" when answering the itemized deductions questions, and enter zero for mortgage interest, property tax, ect. TT will kick you into the standard deduction. Now look to see how much is due or refunded, and compare to the number you wrote down.

Chris
Thanks Chris.
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fishnskiguy
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Post by fishnskiguy »

You are welcome.

That's why we are here.

Chris
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tfb
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Post by tfb »

fishnskiguy wrote:Then go back and "lie" when answering the itemized deductions questions, and enter zero for mortgage interest, property tax, ect. TT will kick you into the standard deduction. Now look to see how much is due or refunded, and compare to the number you wrote down.
Don't lie on the property tax question because you may qualify for the extra $500 or $1,000 property tax deduction when you use standard deduction. If you don't tell it about the property tax, it will not include that.
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Parthenon
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Post by Parthenon »

fishnskiguy wrote:Yes you can. Simply go through the questions for itemized deductions and when done, look in the upper right corner to see how much is due or will be refunded. Jot down that number.

Then go back and "lie" when answering the itemized deductions questions, and enter zero for mortgage interest, property tax, ect. TT will kick you into the standard deduction. Now look to see how much is due or refunded, and compare to the number you wrote down.

Chris
Not necessary to 'lie'. TurboTax will present both figures (standard deduction and itemized deductions) then ask you to make a choice as to which you prefer.

Ed
"What am I gonna do if I run out of money?"
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