Does everyone gets the question about standard or itemized deduction?
by Mortgage Rates on Sunday, October 17th, 2010 | 2 Comments
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Dear P: Sounds like EITC kicked in. Look at the last few lines of the tax return and look for a credit for EITC (earned income tax credit). You can also go to H&R Block and try their free calculator to get a second opinion. You can also go to the IRS EITC tables and check your income against the distribution tables. Your itemized deduction go on Sch. A and this year you may have an increased standard deduction if you paid property tax and no mortgage. The standard deduction this year for married filing jointly is $10,900.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor
If your income is $21,400 or less, itemizing couldn’t make any difference to you, so some softwares would not have asked the question. You’d already get anything back that was withheld, whether you itemized or not, and itemizing can’t help beyond that.
It sounds though like your husband just hadn’t finished the return yet, so it didn’t apply credits like EIC and the additional child tax credit, then whatever you did finished it and triggered that application. EIC alone can add as much as $2917 to your refund for one child. Without knowing your income, no way to say what it would be for you.
Be very sure that if you got a stimulus payment last year, that amount was entered and entered correctly, or the software will add it in again and when your return gets to the IRS, that will result in a delay while they correct it.