How Income Tax Deductions Work – Standard Vs. Itemized

With the tax season in full swing, filing your tax return should be at the top of your agenda. While this may seem like a daunting prospect, Georgen Scarborough Associates, PC is here to help. With our extensive knowledge in tax, we hope to shed some light on some of the more complex aspects of filing your tax return. In this case, the difference between standard and itemized deductions as well as when to file which.

What Are Standard And Itemized Deductions?

The standard deduction is the amount predefined by the IRS that is based upon your filing status (whether you’re single, married, head of household, and so on).

The other option is to itemize your deductions. This includes showing proof and filing each tax-deductible expense you have individually.

If you do not qualify for itemized deductions, you will take the standard deduction by default. With the assistance of an accounting firm like Georgen Scarborough Associates, PC, you can compare both options and choose the one that will result in the lowest tax.

When To Itemized Deductions

If you find yourself having one or maybe more of the following expenses, you might consider doing itemized deductions as you will likely get a lower overall tax liability:

  • Paying a home’s mortgage interest,
  • Paying property, state, and local income taxes,
  • Paying investment interest expenses,
  • Having one or more medical expenses,
  • Any amount of charitable contributions.

Georgen Scarborough Associates, PC

At Georgen Scarborough Associates, PC, we are here for you to help you get the most out of your tax return. Tax returns take long and can be overwhelming to the uninitiated, but with Georgen Scarborough Associates, PC at your back, you can be sure that it will be done right, on time, and will benefit you as much as possible.