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My spouse and I are filing our taxes as 'married filing jointly.' We do not have any dependents. According to our IRS 19981040 instuction booklet, the standard deduction is $7,100 in this case. However, our tax software is calculating a value of $7,500 as our standard deduction. Hypothetically speaking, if our adjusted gross income exceeds $186,800, are there are exceptions to the $7,100 standard? One CPA mentioned that the software might be using the tax we paid to the state to itemize deductions for us. Can anyone explain this?

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One CPA mentioned that the software might be using the tax we paid to the state to itemize deductions for us. Can anyone explain this?

TaxCut software will use the larger of the standard deduction or the sum of itemized deductions on the 1040 form.

Print out the forms and see what your software totaled for itemized deductions.

Always check your forms to see if the computer made any mistakes. While computers are great at addition and subtraction, mine has entered data on the wrong lines, mistyped numbers during data entry and forgotten to check off important boxes. :)

Gary




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[[My spouse and I are filing our taxes as 'married filing jointly.' We do not have
any dependents. According to our IRS 19981040 instuction booklet, the
standard deduction is $7,100 in this case.]]

That is correct...

[[ However, our tax software is
calculating a value of $7,500 as our standard deduction.]]

I can't help you there. But I can tell you that the 1998 standard deduction is $7,100 for married/joint status. And I can't think of any combination of standard deductions/blind exemptions that would equal $7,500...so I can't really help you out.

TMF Taxes
Roy
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