How do i know if i should itemize my deductions or take the standard deduction?

You must itemize deductions if the allowed itemized deductions are greater than your standard deduction or if you must itemize deductions because you cannot use the standard deduction. You may be able to reduce your taxes by itemizing deductions on Schedule A (Form 1040), ITEMIZED Deductions. If your standard deduction is lower than your itemized deductions, you should probably itemize and save money. If your standard deduction is greater than your itemized deductions, it might be worth using the standard deduction and saving some time.

ITEMIZED DEDUCTIONS are tax deductions that you make for various expenses you incurred during the tax year. Sometimes they can exceed the standard deduction, which means that itemizing your tax return can make a big difference to your tax bill. When you itemize your tax return, you choose to choose from the multitude of individual tax deductions that exist instead of opting for the standard fixed deduction in dollars.

Eva Dougherty
Eva Dougherty

Lifelong baconaholic. Webaholic. Professional bacon guru. Evil travelaholic. Total tv lover.

Leave Reply

All fileds with * are required