Standard vs Itemize Deductions
Is it better to take the standard deduction or to itemize deductions? It depends on your situation. The standard deduction amount changes yearly and is based on filing status and age. Itemizing is more complicated but if your total deductions exceed the standard deduction, you might save significant taxes. Taxpayers most likely to benefit by itemizing include those who pay state and local income tax, mortgage interest, mortgage insurance, real estate tax and personal property tax. It may also be beneficial for those with a large eligible casualty loss, high medical deductions, and/or significant charitable donations. We’ll determine the best path when we prepare your tax return.