Standard or Itemized Tax Deductions?
The count down is on. Less than one month until taxes are due. As you’re finishing up your returns, you’ll need to decide whether you’re taking the standard deduction or whether you’re itemizing. You can decide which option is best for you by using software that will try both and compare the outcomes. Here are 6 Tips to help you choose:
1. Add deductible expenses you paid last year. Expenses may include the following:
- Home mortgage interest
- State and local income taxes or sales taxes (but not both)
- Real estate and personal property taxes
- Gifts to charities
- Casualty or theft losses
- Unreimbursed medical expenses
- Unreimbursed employee business expenses
2. Know your standard deduction: If you’re not itemizing, your standard deduction depends on your filing status.
- Single $6,200
- Married Filing Jointly $12,400
- Head of Household $9,100
- Married Filing Separately $6,200
- Qualifying Widow/er $12,400
3. Make sure you don’t qualify as an exception.
You can’t claim a standard deduction if you’re married filing separately and your spouse plans on itemizing.
How are you dealing with your deductions this year?