E-filing standard deduction federal, itemizing for state

[jklcpa]

Taxpayer used the standard deduction for the federal return, itemizing for the state. The only way ATX would include the Schedule A for the state efile was to create a duplicate file and force the federal to use the Sch A even though it was less than the standard. I submitted the state efile after receiving the federal ack.

Will this cause a rejection since the 1040 submitted with the state efile package won't match the actual federal return that was accepted?

[Pacun]

Taxpayer used the standard deduction for the federal return, itemizing for the state. The only way ATX would include the Schedule A for the state efile was to create a duplicate file and force the federal to use the Sch A even though it was less than the standard. I submitted the state efile after receiving the federal ack.

Will this cause a rejection since the 1040 submitted with the state efile package won't match the actual federal return that was accepted?

You don't have to create two returns in your case. Send the Federal and the next day add schedule A and prepare the state return. If the federal is rejected for any reason, you might have a problem because the federal return will not be the same. To avoid that mistake, wait for the Federal to be accepted and then add schedule A.

The IRS couldn't care less in this situation BUT most states have a rule that if take the standard deduction on the Federal, you must take the standard deduction on the State. (I might be wrong).

[jklcpa]

Delaware is one of the states that does allow itemizing when taking the standard deduction for federal.

The Federal Sch A was in the system, but the ATX program won't include the Federal Schedule A with the state efile if the 1040 is using the standard deduction, even though the itemized deductions are properly showing on the state return.

I duplicated the file before forcing the deductions on the federal because I wanted to preserve the actual Federal return as filed with the IRS for my records and for next year's rollover process.

[joanmcq]

CA allows you to itemize for state even if you don't for federal. It just depends on whether CA itemized deductions are greater than the CA standard. However, CA doesn't require attachments of Sch A, B, M, or L. There is a checkbox in ATX to say whether any forms other than those are in the return, and if they are, then the whole return efiles.

I've never checked to see if they require Sch A to be attached if the box is checked....

[michaelmars]

I don't get these sort of questions here or these problems. So far i just assume that since the states approve the software then they are getting what they want. I never have created 2nd returns or played other games like adding forms to returns for just a state or federal purpose and so far i never received a letter re: missing data. I also never would have even thought to see just what forms are being sent. i just assume atx worked it out with the states.

[MontanaEA]

I don't get these sort of questions here or these problems. So far i just assume that since the states approve the software then they are getting what they want. I never have created 2nd returns or played other games like adding forms to returns for just a state or federal purpose and so far i never received a letter re: missing data. I also never would have even thought to see just what forms are being sent. i just assume atx worked it out with the states.

In Montana, it's nearly always better to itemize, even though you may claim standard on the federal return. I prepare Sch A for almost every return I do. That's where the state gets the itemized deduction info. If it's better to take standard on the federal, the program automatically switches the federal return, but not the state. If they don't need the federal itemized deductions to get to zero taxable income, but the federal itemized is more than standard, I check the box on the federal return to force standard deduction. You can also ck the box on the top of Sch A to force it to print, even when you're not using it. It works for me (with no duplicating of the return) but maybe the Delaware state program is different?

[jklcpa]

I tried the block for forcing the Sch A to print, but it still doesn't include in the efile for the state. The only way to get the Sch A actually included with the efile package is to tell ATX that the federal return using the "force to itemize even though standard is better" option, even though that's not how the federal return is actually filed. That's what I was wondering if that would cause a problem. That was suggested to me in past years as a solution.

Perhaps Montana is a state that verifies the A deductions with the federal. Our state requires the Sch A be attached to the efile or faxed separately. I don't like piecemeal handling.

At this time the state return has a status of "IRS cleared". I should know soon enough if this caused a problem.

[Lion EA]

I don't use ATX. My software chooses the best for each situation, or I can force. For instance, here in pricey CT most of my clients do better itemizing for federal, but the NY commuters often do better with NY's standard deduction. So, my software does the math and files Schedule A with the federal return and takes the standard deduction on the NY. I just glance over the returns and e-file.