As a taxpayer, you have the option to choose a standard deduction or to itemize your deductions. Your best bet is to choose whichever option will lower your taxes the most.
For some people, the standard deduction makes the most sense because it allows you to reduce the amount of income you’ll be taxed on, even if you do not have expenses that would qualify as itemized deductions. For others, though, itemizing deductions is a smarter move that allows for greater reduction of your taxable income. Sadly, some taxpayers don’t take advantage of this option because they are not sure what qualifies as an itemized deduction. Fortunately, the IRS provides clear guidelines for which expenses can be itemized by taxpayers.
Itemized deductions can include:
- Real estate taxes
- Some medical expenses
- Mortgage interest
- Disaster losses
- Charitable contributions
- Unreimbursed employee business expenses
If you’ve saved all your receipts throughout the year, you should have little trouble estimating whether these eligible expenses would give you more of a tax break than the standard deduction. If you’re not certain about some of your expenses, contacting a tax resolution specialist will get you the answers you need.
To learn more about your options for itemizing your deductions, call on the tax relief professionals at Taxation Solutions, Inc. We have more than 40 years of experience offering tax resolution services, and one of our tax help specialists will help you figure out the best way to reduce your taxable income!