Itemized or Standard Deduction?
The average taxpayer is no longer able to itemize deduction because of the Tax Cut Jobs Act of 2017. Traditionally, those who itemized deductions paid less taxes and in many cases received bigger refunds. This is a big deal to the average taxpayer who relied upon refunds to pay off debts, buy much needed new items, like a car, beef up their down payment on a house, add money to their savings account, take a dream vacation, excetera, excetera, excetera...
If the deductions you are allowed to take on your individual taxes exceed the standard deduction limit for your filing status, you should itemize.
Filing Statuses and Standard Deductions
For example, if you are married and your spouse is alive and you guys file your taxes together, then you should itemize if your total allowable deductions are greater than $24, 400. The same goes for the other three filing statues, if your allowable deductions are greater than $12,000 if you are single, or *filing separate from your spouse, or you are a single parent with dependents living at home (Head of Household) and your allowable deductions are greater than $18,350, you should itemize your deductions.
Itemizing deductions means listing each allowable deductions on a Schedule A and getting a total that may exceed your standard deduction. You can itemize deductions even if they are less than your standard deduction, but this usually costs more when you have your taxes prepared by a tax practitioner.
* People who are married but file separate returns are treated like single filers with the exception that they lose certain tax credits that single filers are able to claim.
Itemizing deductions means listing each allowable deductions on a Schedule A and getting a total that may exceed your standard deduction. You can itemize deductions even if they are less than your standard deduction, but this usually costs more when you have your taxes prepared by a tax practitioner.
* People who are married but file separate returns are treated like single filers with the exception that they lose certain tax credits that single filers are able to claim.
Itemized Deductions for Individual Civilian Taxpayers
This information comes directly from IRS.Gov. The reason I added it is because the hyperlinked topics have a tool called "Interactive Tax Assistant" that helps you determine whether or not to itemize your deductions and if so, which deductions you are eligible to take.
Should I Itemize? Medical and Dental Expenses Deductible Taxes Home Mortgage Points Interest Expense Charitable Contributions Business Use of Home Business Use of Car Business Travel Expenses Work-Related Education Expenses Casualty, Disaster, and Theft Losses |
Ofcourse, if you have trouble using the "Interactive Tax Assistant" complete and submit the "For More Info." form to the right of blog post on the Home page and select Tax Estimator/Assistant Help.
Topic No. 501 Topic No. 502 Topic No. 503 Topic No. 504 Topic No. 505 Topic No. 506 Topic No. 509 Topic No. 510 Topic No. 511 Topic No. 513 Topic No. 515 |
Tax Credits for Individual Taxpayers
This information comes directly from IRS.Gov. The reason I added it is because the hyperlinked topics have a tool called "Interactive Tax Assistant" that helps you determine which credits you are eligible to take.
Earned Income Credit Child and Dependent Care Credit Adoption Credit and Adoption Assistance Programs Excess Social Security and RRTA Tax Withheld Retirement Savings Contributions Credit The Premium Tax Credit |
Again, if you have trouble using the "Interactive Tax Assistant" complete and submit the "For More Info." form to the right of blog post on the Home page and select Tax Estimator/Assistant Help.
Topic No. 601 Topic No. 602 Topic No. 607 Topic No. 608 Topic No. 610 Topic No. 612 |