If you are wondering if you should use the standard deduction or itemize, here are some tips that will help you.
Standard Deductions for 2015 are as follows:
Single $6,300
Married Filing Jointly $12,600
Head of Household $9,250
Married Filing Separately $6,300
Qualifying Widow(er) $12,600
To see if itemizing your deductions is more beneficial than the standard deduction, simply add up your deductible expenses including:
- Home mortgage interest
- Real estate and personal property taxes
- Gifts to charities including non cash donations mileage for volunteer work
- Casualty or theft losses
- Sales taxes — if you made a major purchase such as a car be sure to include the sales tax made on that purchase
Then, compare the numbers to see which method would benefit you the most. There are some exceptions where itemized deductions are limited or the standard deduction can’t be taken but in most cases, it’s fine to choose either deduction method. A Schedule A will need to be completed with your return if you choose to itemize.
If you file your own taxes, you can do so on this website. 1040 EZ filing is FREE, 1040 A (standard deduction) filing is $19.95, and 1040 (itemized deductions) filing is $39.95.