When Filing your taxes, one important decision is choosing between the standard deduction vs. itemized deductions. Understanding the difference can help reduce your taxable income and avoid overpaying on your tax return.
What Is the Standard Deduction?
The standard deduction is a fixed dollar amount set by the IRS that reduces your taxable income. You don’t need to track expenses or provide receipts to claim it. Many taxpayers choose the standard deduction because it’s simple, efficient and often the best option for their situation.
What Are Itemized Deductions?
Itemized deductions allow you to deduct certain qualifying expenses you paid during the year. Instead of taking a flat amount, you list each eligible expense on your tax return.
Common itemized deductions include:
- Mortgage interest
- State and local taxes
- Property taxes
- Charitable contributions
- Certain medical expenses
Standard Deduction vs. Itemized Deductions: Which Should You Choose?
You can only choose one option — the one that results in the larger deduction.
If your total itemized deductions exceed the standard deduction, itemizing may lower your tax bill. If not, the standard deduction is usually the better choice
Final Thoughts
Most taxpayers benefit from the standard deduction, but itemized deductions can make sense in certain situations. Choosing the right deduction depends on your income, expenses, and overall tax picture.
If you’re unsure which option applies to you, please don’t hesitate to reach out to me and have your tax documents reviewed at no cost to help ensure you’re filing accurately and efficiently.
Please visit the IRS website directly for more information – https://www.irs.gov/newsroom/deductions-for-individuals-the-difference-between-standard-and-itemized-deductions-and-what-they-mean
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