Who cannot take the standard deduction?
Some taxpayers cannot take the standard deduction and must itemize. During the interview, find out if the taxpayer is:
If either situation applies, the taxpayer must itemize personal deductions and the box on Form 1040, page 2, must be checked.
Chase files as Married Filing Separately. Her spouse, Grant, will be itemizing his deductions. Chase cannot use the standard deduction; she must itemize her deductions.
The tax software automatically calculates the standard deduction based on information collected on the Main Information Sheet. If the taxpayer cannot take the standard deduction, the software will prompt the preparer to itemize deductions.