Income Tax Service For Individuals - When you file your tax return, you usually have a choice whether to itemize deductions or take the standard deduction. Before you choose, it’s a good idea to figure your deductions using both methods. Then choose the one that allows you to pay the lower amount of tax. The one that results in the higher deduction amount often gives you the most benefit.
The IRS
offers these six tips to help you choose.
- Figure your itemized deductions. Add up deductible expenses you paid during the year. These may include expenses such as:
- Home mortgage interest
- State and local income taxes or sales taxes (but not both)
- Real estate and personal property taxes
- Gifts to charities
- Casualty or theft losses
- Unreimbursed medical expenses
- Unreimbursed employee business expenses
Special rules and limits apply. Visit IRS.gov and
refer to Publication 17, Your Federal Income Tax for more details.
2. Know your
standard deduction. If you don’t
itemize, your basic standard deduction for 2013 depends on your filing status:
- Single $6,100
- Married Filing Jointly $12,200
- Head of Household $8,950
- Married Filing Separately $6,100
- Qualifying Widow(er) $12,200
Your standard deduction is higher if you’re 65 or
older or blind. If someone can claim you as a dependent, that can limit the
amount of your deduction.
3. Check the
exceptions. Some people don’t qualify
for the standard deduction and therefore should itemize. This includes married
couples who file separate returns and one spouse itemizes. 4. Use the
IRS’s ITA tool. Visit IRS.gov and use
the Interactive Tax Assistant tool to help determine your standard deduction.
5. File the
right forms. To itemize your deductions,
use Form 1040 and Schedule A, Itemized Deductions. You can take the standard
deduction on Forms 1040, 1040A or 1040EZ.
6. File
Electronically.
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