Itemizing vs. Standard Deduction: Six Tips to Help You Choose!!!!!! When you file your tax return, you usually have a choice whether to itemize deductions or take the standard deduction. Before you choose, it’s a good idea to figure your deductions using both methods. Then choose the one that allows you to pay the lower amount of tax. The one that results in the higher deduction amount often gives you the most benefit. The IRS offers these six tips to help you choose. 1. Figure your itemized deductions. Add up deductible expenses you paid during the year. These may include expenses such as: 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 Special rules and limits apply. Visit IRS.gov and refer to Publication 17, Your Federal Income Tax for more details. 2. Know your standard deduction. If you don’t itemize, your basic standard deduction for 2013 depends on your filing status: Single $6,100 Married Filing Jointly $12,200 Head of Household $8,950 Married Filing Separately $6,100 Qualifying Widow(er) $12,200 Your standard deduction is higher if you’re 65 or older or blind. If someone can claim you as a dependent, that can limit the amount of your deduction. 3. Check the exceptions. Some people don’t qualify for the standard deduction and therefore should itemize. This includes married couples who file separate returns and one spouse itemizes.
Posted on: Wed, 12 Mar 2014 02:47:13 +0000
Trending Topics
Recently Viewed Topics
© 2015