Deductions: Standard vs. Itemized

             This is a decision that some struggle with each year. Is it better to itemize or use the Standard Deduction? There is no one answer that fits everyone in every situation. Deductions can lower the amount of taxable income in a given year. Does that mean that itemized is best? Not always.

          Itemized deductions. This is often used when the amount of deductions claimed will be greater than the Standard Deduction or if Itemization is the only option. For example, if a Taxpayer had large uninsured medical expenses, uninsured theft or losses, or large contributions to qualified charities, they may choose to itemize.

          Standard deduction. This is considered to be the quick and easy option. However, this amount will change every year and is determined by the Taxpayer’s age, filing status and other factors. Something else to consider is that this year, up to $300 could be claimed as a contribution while still using the Standard Deduction. Usually the best way to decide on which choice to make is to have a conversation with your Qualified Tax Professional.

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