Which would be better to go with Itemized or standard deductions for Taxes??

Question

I'm filing out my tax returns through a program called TaxCut and I've come to the point where it says Standard vs Itemized. I don't understand what they are asking me to do. My standard is $5,150 and my itemized is $28. When I click "Why would i choose itemized" it says "Unless you're filing a Georgia, Oklahoma, Utah, or Virginia tax return, you should use the standard deduction we selected for you." I'm filing an Oklahoma return so when it says "If you are filing a Georgia, Oklahoma, Utah, or Virginia tax return, you could benefit from itemizing deductions on your federal return, even though it results in higher federal tax." what does that mean??
I need help!!

Answer 1

From your information it would be more beneficial to take the Standard deduction, You only want to itemize your deductions when they add up to more than your Standard deduction

Answer 2

The higher your deductions, the lower your federal taxes will be. High medical costs or mortgage interest payments (or other deductible expenses) could have increased your itemized deductions from $28 to more than $5,150. In that case you would choose the itemized deduction.

I'm not from OK, but I would guess that when you file your OK state taxes the amount you paid in federal taxes would be deductible. The software is prompting you to calculate your state taxes before you choose the standard deduction. The objective is to minimize your total taxes. It's possible higher federal taxes paid may put you in a -0- state tax bracket. The OK Dept of Rev should have online forms that you can use.

Ain't filing taxes fun!

Answer 3

The program may be confusing the issue of itemization regarding state rules. I suggest in the future you purchase TurboTax, or visit an authorized tax preparer.

At any rate, it is best to choose the higher possible deduction method - in your case it is the standard. You should only choose the itemized method if your deductions (such as medical costs, mortgage interest, property tax, un-reimbursed job expenses, etc.)are greater than the standard amount.

Answer 4

Click on standard. You're not close to itemizing. If you were close, in some states you'd get enough benefit on your state return that you'd be better off in total by itemizing if you were just a little below the standard.

Answer 5

The itemized is for people with deductions that exceed the standard. A mortgage interest for example or large medical bills. Go with the standard.

Answer 6

Im not sure what it means, but i think that in some states there are additional/less income, sales, payroll taxes. Maybe you could try following through both ways. That way it will show you. You should be able to save each return as a separate file.