Are Itemized Deductions Worth the Effort?1 min read

by | Tax Planning, Preparation & Compliance

  1. Home
  2. Tax Planning
  3. Preparation & Compliance

Save time and trouble (and maybe some taxes) by knowing the difference between the standard and itemized deduction.
When calculating your taxable income you have the option to use the standard deduction or an itemized list of qualified deductions.  If you have a large mortgage or sizeable charitable donations, itemizing will definitely be the way to go.  Otherwise, it comes down to deciding if sifting through all your records and receipts will be worth the trouble.
In 2015 the standard deduction for singles will be $6,300 and for those married filing jointly it will be $12,600.  The standard deduction is slightly higher if you or your spouse is over 65 or blind. You probably will be better off with the standard deduction if your total mortgage interest, property taxes, and charitable donations are normally less than those figures.
Itemizing might be the way to go if you have a large out-of-pocket medical bill in one year.  Through 2016 only qualified medical expenses exceeding 10% of your adjusted gross income (AGI) or 7.5% if you are 65 or older are deductible.   The threshold will be 10% for everyone after 2016.  Maximize your tax savings by adding other deductions, such as extra charitable donations, before December 31 if you think you will qualify for a medical expense deduction this year.
It is important to note that you might be better off itemizing if someone else can claim you as a dependent since you would not be able to take the full standard deduction.  When income reaches $258,250 for single filers or $309,900 for married filing jointly, itemized deductions will be limited.
Get advice from one of our tax professionals to help you decide if keeping track of potential itemized tax deductions might be necessary in your situation!
 

By Simons Bitzer



View bio | Read more articles

Here are a few additional articles you might be interested in:

Staff Accountant

JOB DESCRIPTION Position: Staff Accountant Department: Accounting Status: Full Time OVERALL SUMMARY OF POSITION: As a Staff Accountant, you will have the opportunity to help ensure that the firm’s clients receive high quality services on a timely basis by supporting...

read more

Senior Tax Accountant

JOB DESCRIPTION Position: Senior Tax Accountant Department: Tax Status: Full-time OVERALL SUMMARY OF POSITION: As the firm’s Tax Senior, this person will ensure that the firm’s clients receive high quality services and accurate tax returns on a timely basis along with...

read more

Can we help you find something?

Want to continue the conversation?

Share This