Standard vs. Itemized Deduction

Understand the difference between taking the standard deduction and itemizing your deductions with this comprehensive guide. Learn about the benefits and limitations of each option, and when it might be advantageous to choose one over the other. This guide covers the criteria for itemizing deductions, the types of expenses that can be deducted, and special considerations for certain taxpayers.

Highlights:

• Standard Deduction: Overview of the standard deduction amounts and the additional amounts for those who are 65 or older, or blind.

• Itemizing Deductions: Basic requirements for itemizing, including common deductible expenses like medical expenses, taxes, and mortgage interest.

• Limitations: General rules and limitations on certain itemized deductions, such as medical expenses and state and local taxes.

• Choosing Between Standard and Itemized: Factors to consider when deciding whether to itemize deductions or take the standard deduction, including the impact of personal circumstances and specific tax situations.