Tax Topic 5 - Standard Deduction VS Itemized Tax Deductions

The standard deduction for most taxpayers who do not itemize their deductions is usually higher every year. The standard deduction annual increase is usually due to inflation adjustments. Every tax year, you either have to use the standard deduction that is provided to you depending on your filing status and certain other situations. Itemizing your deductions on the other hand is based on any state or real estate taxes, medical and dental expenses, home mortgage interest and job expenses. You have a choice on which of the two deductions to use, standard or itemized. However, you would normally choose the higher amount because it will give your the greater benefit.

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Revised: 01/23/16