Standard Deduction vs. Itemized Deductions: Which Is Better?
You should itemize deductions if your allowable itemized deductions are greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction. You may be able to reduce your tax by itemizing deductions on Schedule A (Form ), Itemized Deductions. Itemized deductions include amounts you paid for state and local income or sales taxes, real estate taxes, personal property taxes, . Jan 22, · Add up all the expenses you wish to itemize. If the value of expenses that you can deduct is more than the standard deduction (in these are: $12, for single and married filing separately, $24, for married filing jointly, and $18, for heads of households) then you should consider itemizing.
To make the e-filing process quicker, gather your forms and documents before you begin. Read also: How to File Taxes with a W-2 and a If you choose the fully guided filing experience with TaxSlayeryou will be asked questions about the information on these documents. Then, your answers will automatically be filled in where they belong on your tax return. Otherwise, you may choose to enter the info on your own. The information in this article is up to date through yoyr year taxes filed Date of birth for everyone on your return.
Your employer has until Neer to send you your form. Bank or financial institution statements — Neer you make contributions to an IRA? Are you paying down student loan debt? Be sure to grab your Form E. Did you take out a home mortgage?
Be sure to have your Form Mortgage Interest Statement. Other miscellaneous income records — This could include award money, gambling winnings, lottery pay-outs, etc. Any and all Form s — There are several different types how to make a disney princess cake Quarterly estimated tax payment receipts — If you make installments to your tax bill during the year, the IRS and your state should send you a record of what you paid — similar to a receipt.
Home office expenses — Taking the home office deduction? Read more about the home office deduction. Medical Expense Receipts itemlze Records Receipts for unreimbursed medical expenses — These could include exams, surgeries, and preventative care. It could also be braces, glasses, hearing aids, prescriptions — even transportation to and from treatment.
Insurance providers will send tazes B for individuals they cover. If your employer offers coverage, they should send you a C. Learn more about what counts as a charitable donation here. Other Homeownership Info Property tax receipts — If you itemize your deductions, you could write off a portion of the property taxes you paid. Share article:. Get started today to need your maximum refund. Related Posts Tax Tips. February 2, TaxSlayer Gator Itemoze.
January 2, Tax Tips. January 1,
100% free fed & state, PLUS free expert review.
Tax Year Tax Returns due on April 15, The eFile Tax Season starts in January Start Your Tax Return Now. You can deduct your expenses via standard deduction or itemized deductions. Not sure whether to itemize deductions or use the standard deduction? When you prepare and e-File your tax return on eFile. If you have questions, you can always contact one of our Taxperts.
If you want to learn more about itemized deductions, read on for a list of expenses you can itemize on your Tax Return. It might be beneficial for you to itemize your, your spouse's, and your dependents' medical and dental care expenses on Schedule A associated with Form When you prepare and e-File your taxes via the eFile.
To find out how much you can deduct or itemize, add up your total medical and dental expenses for yourself, your spouse, and dependents for Tax Year You can only deduct the medical expense amount that exceeds 7. Keep in mind that state, local, sales, and foreign property taxes deducted on Schedule C, Schedule E or F do not have a limit.
For example, if an individual owned and rented a property, their property taxes are not capped. Home mortgage interest is the interest you paid on debt taken out to buy, build, or improve your home. Just to be clear, you can only deduct the interest you paid on your mortgage debt, not on the debt amount.
The interest amount is reported to you on Form provided for the year by your mortgage company. You could also use the debt to pay college tuition, credit card debt, or other non-home expenses.
For home equity debts incurred after December 15, , you cannot deduct interest on the debt on Tax Returns unless it is used to buy, build, or improve your home that secures the debt. Debts incurred on or before December 15, are grandfathered into the old amounts listed above. Charitable deduction allowances have been extended as a result of the Consolidated Appropriations Act, or "second stimulus" legislation from Dec.
The gift must go directly to charity in cash rather than to a donor-advised fund or private foundation. Otherwise, you generally need to itemize to take the charitable deduction, which fewer people do since the standard deduction doubled a few years ago.
For record keeping purposes please consider the following:. The public charity or private foundation is a non-profit, IRS registered c 3 organization. Keep a record of the contribution usually the tax receipt from the charity.
For non-cash donations, you might have to obtain a qualified appraisal to substantiate the value of the deduction you are claiming. The itemized deduction for personal casualty and theft losses has been removed for Tax Years through with the exception of losses attributable to a federal disaster as declared by the President. These include expenses incurred on the job and are not reimbursed e.
In summary, deductions for un-reimbursed employee expenses and tax preparation expenses cannot be included on Tax Returns. Below a summary of the sample amounts listed above in comparison to the Tax Return standardized deductions. As you can see, with the filing status Single and Married Filing Separately, you would be well advised to itemize your deductions.
All other filing statuses would do better with the standardized deduction. Get Your Tax Refund Date. What is DocuClix? Security About eFile. Where Is My Refund? How to Check Refund Status efile. Mailing Addresses Contact eFile. Sign In Start Now. Why Choose eFile. TaxTalk With Tess. Prepare and eFile your Tax Returns on eFile.
Got Questions? Contact us now Continue Cancel.