Should I Itemize Deductions on My Tax Return?
Amherst, NH Tax Filer Wonders
By itemizing deductions on your tax return, you are choosing from the many individual tax deductions, instead of taking a flat-rate deduction. In some cases, itemizing deductions can save you money on your taxes. Deductions that can be itemized include medical expenses, property taxes, charitable contributions, mortgage interest and many more.
An Amherst resident was looking to save money on her taxes, and inquired whether itemizing deductions on her tax return would help.
Advantages of Taking the Standard Deduction
The standard deduction is a flat number that can be deducted from your taxes. In 2018 this was $12,000 for single filers and $24,000 for married couples filing jointly. This type of deduction simplifies the process of doing your taxes, eliminating the need for itemizing and record-keeping of every deduction. It is also much faster to file taxes using the standard deduction.
Itemizing Deductions Can Add Up, Meaning More Savings
Many times, itemizing deductions can give more tax savings than the standard deduction. This is often the case if you had large un-insured medical expenses, mortgage interest on your home, large donations to charities and many other situations. For many tax payers, it makes sense to itemize these deductions from year to year.
A tax professional, like Merrimack Tax Associates, can assist in finding which deduction will be more advantageous for you. After meeting with this Amherst resident, she learned that itemizing her taxes would indeed have a significant impact on reducing her overall tax bill.