Standard Deduction vs. Itemized: What’s the Difference?
When preparing taxes, one of the first decisions many people encounter is choosing between the standard deduction and itemizing. Here’s a general overview of what each option means.
Standard Deduction
Most people take the standard deduction.
It’s a fixed amount determined by filing status.
Itemized Deductions
Itemizing allows you to list eligible expenses such as:
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Mortgage interest
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Certain medical expenses
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Charitable contributions
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State and local taxes
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Some job-related or business expenses
Which Option Is Better?
People typically choose the option that results in the lower taxable income.
The right choice depends on your personal situation.
Reminder
Review IRS guidelines or consult a qualified professional for help determining what applies to you.
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