Which Choice is Best?


         Should I make a standard deduction or should I itemize? This is a question that many have asked every year during Tax Season. Every situation is different, so here are some key points to keep in mind making this choice.

When making the choice of a Standard Deduction, the amount is based on the Taxpayer’s filing status for 2016. For example, if the status chosen is “Single” or “Married Filing Separately” then the deduction amount is $6,300. If they qualify as “Head of Household” then the amount is $9,300. However there are exceptions to these amounts. If the Taxpayer can be claimed as a dependent, then the amounts will be lower. They will be much higher if the Taxpayer is over 65.

Itemized Deductions require a lot of paper work and attention to detail but might be worth the effort. Some of the expenses that can be listed are: real estate and personal property taxes, home mortgage interest, and gifts to charities. It is also possible to itemize state and local income taxes OR sales taxes. They can never be listed together. Other expenses can qualify, but there are limits that need to be observed. Your Tax Professional would be able to guide you through this process.

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