The Standard Deduction in 2020

It’s never too early to plan for the future. That is especially true when it comes to taxes. People are always looking for the best, legal ways, to reduce what they owe. One way is to take a close look at deductions. There are two choices when it comes to this area, a Taxpayer can Itemize or take the Standard Deduction.

To make the right decision, you need to know how much the Standard Deduction will be worth. It changes every year, usually to keep up with inflation. The amount also varies depending on the filing status you choose. For 2020, the Standard Deduction will increase. For example, for someone who will file as “Single” the deduction will rise by $200 to $12,400. If the Standard Deduction is claimed, then most other deductions like property taxes or charitable contributions cannot be claimed. If someone would like to claim deductions in excess of what the Standard Deduction amount is, then they should Itemize. This would require much more detailed information, but it would be worth the effort. However, when claiming the Standard Deduction, there are certain other deductions that can be claimed. Talk to your Qualified Tax Professional to find out more.

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