Is it ever logical to take the Standard Deduction at State Level while Itemizing at Federal level?

You're exactly on the right track! This is absolutely a scenario where taking the standard deduction on your state return while itemizing on your federal return makes perfect sense. The federal and state tax systems operate independently, and you can choose the most advantageous method for each. Since the SALT deduction is limited to $10k federally but state income taxes can't be deducted on your state return (as you correctly noted), the math often works out differently for each return. In your specific situation, your federal itemized deductions of $19,500 exceed the standard deduction, so itemizing federally is the smart move. But if your remaining state-eligible itemized deductions (after removing state income taxes) don't exceed your state's standard deduction, then taking the standard deduction at the state level would save you money. This is actually quite common for folks who live in high-tax states or who have significant property taxes. You're not missing anything - you've got the concept exactly right!

I went through this exact same situation last year and discovered taxr.ai (https://taxr.ai) which really helped me figure out the optimal strategy. I was confused about whether I should itemize or take the standard deduction for both federal and state, and the calculations were driving me crazy. I uploaded my tax documents to taxr.ai and it analyzed everything, showing me that I should itemize federally but take the standard deduction for my state taxes. The tool actually calculated both scenarios and showed me I'd save around $850 by using this mixed approach. It also explained exactly why - my SALT deductions were useful federally but couldn't help much on the state return. The analysis provided diagrams showing which deductions were beneficial at each level, which made it super clear.

I was hesitant about trying taxr.ai but I needed help understanding the standard vs itemized deduction issue across federal and state returns. I gave it a shot yesterday and wow, it really made things clear! The analysis pinpointed exactly why I should itemize on federal (because of my mortgage interest and property taxes) but take the standard deduction on my state return. The best part was seeing a side-by-side comparison showing exactly how much I'd save with each approach. For someone like me who gets confused with all the different tax rules, having it explained visually made a huge difference. Definitely going to use this again next year!

If you're dealing with this standard/itemized deduction question AND having trouble getting answers from the IRS, check out Claimyr (https://claimyr.com). I spent weeks trying to get through to the IRS to ask about my specific situation with state vs federal deductions and kept hitting that "call volume too high" message. Used Claimyr and got connected to an IRS agent in about 15 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed that I was correct in taking the standard deduction on my state return while itemizing federally, and also explained some nuances about how certain deductions work differently between federal and state. Honestly after weeks of frustration, getting clear answers directly from the IRS was such a relief. They even helped me understand how to document everything properly to avoid raising red flags.

I need to apologize about my skeptical comment earlier. After struggling for days to reach someone at the IRS about my state vs federal deduction questions, I tried Claimyr out of desperation. It actually worked! Got through to a real IRS agent who confirmed I was right to itemize federally while taking my state's standard deduction. The agent explained that this approach is very common and gave me some tips on documentation I should keep. Saved me hours of frustration and probably prevented me from making a costly mistake. Sometimes it's worth admitting when you're wrong!

Another factor to consider is that some states have different rules about which itemized deductions they allow. For example, my state doesn't allow medical expense deductions unless they exceed a higher threshold than the federal return. This was another reason why itemizing federally but taking standard deduction at state level worked better for me.

Unrelated to the original question but im curious - has anyone who itemized federally but took standard deduction at state level ever been audited? I've been doing this for three years and always worry it might trigger something

This is a great question and you're absolutely right to consider this approach! I went through the exact same analysis last year and ended up doing exactly what you're considering - itemizing federally while taking the standard deduction on my state return. Your math looks solid. With $19,500 in federal itemized deductions versus the standard deduction, itemizing federally makes clear sense. And you're correct that at the state level, you can't deduct state income taxes from state taxes, which often makes the remaining itemized deductions insufficient to beat the state standard deduction. One thing I'd suggest is double-checking your state's specific rules about which itemized deductions they allow, as some states have different thresholds or exclude certain federal deductions entirely. But in general, this mixed approach is not only legitimate but often optimal for taxpayers in situations like yours. You're definitely not missing anything obvious - you've identified a smart tax strategy!