To itemize or not to itemize. That’s the question many taxpayers face come tax time. Itemizing your deductions is a lot more work than taking the standard deduction, but it can also help you save on your taxes. Here’s an overview of what you need to know about deductions and your taxes.
When you take the standard deduction, all you have to do is write the number on the line. (For 2015, the standard deduction is $6,300 for single taxpayers and married taxpayers filing separately; $12,600 for married taxpayers filing jointly.) But if your itemized deductions would add up to more than that amount, you’re leaving money on the table by taking the standard deduction. For taxpayers with large deductible expenses, you’re generally better off itemizing.
Common itemized deductions include:
- Qualifying medical expenses
- Property taxes, state income (or sales) tax, and personal property tax
- Mortgage interest
- Charitable contributions
- Some employee business expenses
Not sure if your expenses qualify to be itemized deductions? Not certain whether itemizing makes sense? Taxation Solutions, Inc. can answer your questions. We solve all types of tax problems in Milwaukee, and we’re ready to put our expertise to work for you. Don’t hesitate to give us a call today!