01/25/2023
Ever wonder it’s worth itemizing on your taxes?
For background, the IRS allows the option between a standard deduction ($25,900 for married couples or $12,950 for single filers) or a list of deductions they list on Schedule A of your 1040. Obviously you’d want the bigger of the 2 options (bigger deduction = less tax). So if the sum of the listed deductions is more than $25,900/$12,950, then you should itemize.
Here’s what’s on the list:
1. Medical expenses (minus 7.5% of AGI, which is adjust gross income aka income minus a couple specific deductions)
2. Taxes paid (state and local, real estate, personal property, etc) maxed at $10k
3. Interest (mortgage, investment, HELOC) max $750k balance
4. Charitable contributions (limited for noncash contributions)
5. Miscellaneous items that don’t occur often ie natural disaster losses
If you are close to the $25,900/$12,950 each year, you can consider contributing extra or doubling up on charitable contributions every other year or on years where you expect more medical expenses.
Schedule an appointment if you’d like to learn more!
Business & Individual Tax Consulting Advocating for individuals and business owners.We are all required to pay taxes, but that doesn’t mean you need to break the bank. My mission is to save clients money and time on their taxes so they can invest more in their business and family. Choosing Dudley ...
