Bad circular dependency in the US 1040 that never ends

There seems to be a bad circular dependency in the US 1040 that never ends:

Form-1040 Line 10b, and therefore 10c, depend on Sched-A line-11 (if you do not itemize). Sched-A line-17 (determines if you itemize) depends on Sched-A line-4. Sched-A line-4 depends on Sched-A line-2, which comes from Form-1040 line-11. But Form-1040 line 11 depends on Form-1040 Line-10c (which re-starts the calculation above).

So here is what happens for me:

L9 = 57,780 L10a = 50

First, L11 = 57,730 (initial estimate based on L9 - L10a) A1 = 4,380 A2 = 57,730 A3 = 4,329 A4 = 50.21 A6 = 5,160 A7 = 5,160 A11 = 300 A14 = 300 A16 = 20,585 A17 = 26,095 Since A17 < 26,100 (our std.deduction), So I use the Std.Deduction and don't itemize. L10b = 300 (since I am not itemizing) L10c = 350 So, L11 = L9 - L10c = 57,430 (Notice that L11 goes UP BY $300.)

So this makes me need to recalculate Schedule-A, since A2 has changed.

Second time through, L11 = 57,430 A1 = 4,380 A2 = 57,430 A3 = 4,307 A4 = 73 A6 = 5,160 A7 = 5,160 A11 = 300 A14 = 300 A16 = 20,585 A17 = 26,118 Now A17 > 26,100 (our std.deduction), So now better to itemize. L10b = 0 (since I am now itemizing) L10c = 50 So, L11 = L9 - L10c = 57,730 (Notice that L11 went DOWN BY $300.)

Now I have to recalculate Schedule-A again, since A2 has changed again !!

It keeps changing by +/- $300 no matter how matter how many times I do it.

Am I missing something ??? TurboTax just hangs and crashes on me here.

What is recommended in this situation ?

Thanks !!

Reply to
Ginzo Abai
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I don't know anything about TurboTax, but don't fill out Schedule A if you have determined you will use the Standard Deduction. Doesn't TT do this for you? Or have a check box for using the Standard Deduction?

Reply to
Taxed and Spent

Yes, it's possible to get into a circular calculation, but I don't think this is one of those cases. I see several issues that need clarification. Your entry fo r A6 - what does it represent? There aren't many other taxes that would be that large on a return this size. Why is there no entry for A5a? Same question for your entry for A16. It's also unusual to have other itemized deductions (not subject to 2% AGI haircut) under TCJA 2017.

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

Rather than treating this as a circular calculation, I think you can look at this as being driven by a choice to itemize or not. So do two returns. Itemize on one of them and don't itemize on the other one. Once you've made the itemization decision on a return, don't revisit that decision and only calculate the schedule A once.

Pick the choice that results in lower tax.

========================================= MODERATOR'S COMMENT:

Excellent advice.

Reply to
Tom Russ

Yes, excellent advise. OP has already done two returns and provided the numbers, and it shows he is better off using the standard deduction. That is why I gave my advise in the first place.

Reply to
Taxed and Spent

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