How does ESPlanner calculate the tax effect of listed Special Expenditures - Deductible (such as charitable contributions) if the listed Special Expenditures - Deductible plus state & real estate taxes is less than the standard deduction?
Obviously they are irrelevant to the tax calculations in this case, but I can't tell if ESPlanner is using the the listed Special Expenditures - Deductible or not.
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cavers-30617 at mypacks.n wrote:How does ESPlanner calculate the tax effect of listed Special Expenditures - Deductible (such as charitable contributions) if the listed Special Expenditures - Deductible plus state & real estate taxes is less than the standard deduction?
Obviously they are irrelevant to the tax calculations in this case, but I can't tell if ESPlanner is using the the listed Special Expenditures - Deductible or not.
It gives you the best possible deal. If you deduct more by taking the standard deductions, that's what you deduct.
I'd have to look at the code for details on the interaction with mortgage and property tax, but I'm pretty sure the same things happens there, if the sum of your deductions from all sources is less than the standard deductions available to you, you get the standard deductions.
Best,
Dick Munroe