Bad circular dependency in the US 1040 that never ends

Feb 08, 2021 Last reply: 5 years ago 4 Replies

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 !!


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?

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

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.

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.

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