To simplify this question, first, you need to know what is the standard deduction for your situation?
The Standard Deduction each year is a set amount depending on the situation you’re filling for (Single or Married filing separately, Married filing jointly, Qualifying surviving spouse, or Head of household). If your itemized deductions are higher than the Standard Deduction, then you should fill out form Schedule A.
This will reduce the amount of money you will have to pay taxes on. What are itemized deductions you ask? Some examples are medical and dental expenses that you paid out of pocket (you weren’t reimbursed, or insurance didn’t pay for), state and local taxes, real estate taxes, property taxes, mortgage interest, gifts, casualty, and theft losses from a federally declared disaster.
Some have limits on the amount that can be deducted, but if you have more to itemize than the Standard Deduction limit, then you should definitely go the itemized route. If you know you don’t have enough to itemize, then go the Standard Deduction route.
Tax professionals will ask you questions to help you decide which deduction route will assist in you paying less taxes or give you the biggest refund.
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