Should you itemize or choose the standard deduction?

Should you itemize or choose the standard deduction?

When preparing your federal tax return, you have the option of either taking the standard deduction, or, if you think you may have more qualified expenses than the standard deduction provides, you may choose to itemize your deductions. The amount of the standard deduction for 2017 depends on your filing status. The following shows the standard deduction amounts for tax year 2017:

Single or Married Filing Separately – $6,350

Married Filing Jointly or Qualifying Widow(er) – $12,700

Head of Household – $9,350 If you choose to file using the standard deduction, one of the amounts above, based on your filing status, will be deducted from your income before the amount of tax you owe is calculated.

 

If you have expenses that are more than the standard deduction allowed for your filing status, you may want to itemize your deductions. Here are some tips to help you decide which to choose:

  • Use IRS Free File.

If you earned $66,000 or less, you qualify to use free, brandname software to do your taxes for free.

IRS Free File helps you determine whether to itemize by finding your tax credits and deductions and doing the math for you. You can even do your taxes from your mobile phone or tablet.

If you earned more than $66,000, you can use Free File Fillable Forms, the electronic version of IRS paper forms.

Check out other e-file options.

  • Figure Your Itemized Deductions.

You need to add up deductible expenses you paid during the year. Visit IRS.gov and refer to Publication 17, Your Federal Income Tax, When to Itemize, for more details.

  • Use the IRS Interactive Tax Assistant Tool. Use the Interactive Tax Assistant tool on IRS.gov. It can help you determine if you can use the standard deduction. It can also help figure your eligibility for certain itemized deductions.
  • File the Right Forms. To itemize your deductions, file Form 1040 and Schedule A, Itemized Deductions. You can take the standard deduction on Forms 1040, 1040A or 1040EZ.

 

 

About
“If you can't figure it out, figure out a "work-around!" The NestEggg Group was founded with a firm belief that working exclusively with professional firms to help them see past their history into the potential of their futures. Your potential is limited only by your creativity. Jeff's business purpose— “why”—centers on changing results through viewing things in new ways. He expounds: “Changing our results requires changing our actions. Because what we do proves what we believe, only when we change our beliefs can we progress. New insights are what cause us to shift our beliefs.” So what results do you want to attain? Call Jeffrey (1-888-987-NEST) when it’s time for progress. About Robert "Jeffrey" Wolter, President The NestEggg Group, Inc & EgggsAct Tax, Inc. & Managing Member NestEggg Investment Advisors Jeffrey is a common sense and productivity strategist. He facilitates and teaches about growth, positioning, and pricing strategies; leadership; operations; business communications and philanthropy. What he does best—differently from others—is energize people while he shows them how to solve business effectiveness. He clarifies the intricate, huts new light. He encourages hope. He sets you up to make development possible. Jeffrey is recognized for his original ideas and success with practical implementation, even as he challenges the "norm". Jeffery is a skilled facilitator. His deep knowledge of his firm(s) operations and ability to understand the intricacies of All of his clients, gives way to sharp observation skills allow his grasp a firm’s nuances quickly. He then guides firm owners and their teams on their unique paths toward improved profitability, smoother operations, stronger cultures and how and when to give back. Since 1998, he's helped more than 5,024 QuickBooks users and business owners achieve results such as: expanding revenues, attracting and inspiring talent, aligning operations with long-term objectives, discovering and leveraging their differentiation, substantially increasing sales and proposal results, strengthening relationships with their clients, and finding more joy in their work. His 25+ year career background includes roles as entrepreneur, finance director, board of director for several nonprofit, creative business development, insurances agency owner, Wealth Management Firm owner, editor, Tax Specialist, Accounting Director, Mediator and more. Before creating his firm in 2007, Jeffrey was an accountant for several well know local firms and individuals. After building a successful accounting practice, he became intrigued and inspired by the uniqueness of how Insurance, Investment's/Wealth Management, Taxes and Accounting/Bookkeeping all tend to work together, he branched out and created his list of Affiliate Companies in 2012 & 2013 In 2013, joined the Intuit Accountants Council and has assisted in the continued enhancement of the popular QuickBooks (Desktop and Online versions) and did so until late 2015. In 2014 with the legalization of Marijuana, Jeff and his team have committed themselves to knowing as much about the industry and being there to offer Cannabis Compliant, Accounting, Tax & Insurance to business owners that have or need help in keeping in with the Federal government's "280E"
Contact Us

Send us an email and we'll get back to you, asap.

Not readable? Change text.