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Effective URL: https://www.jacksonhewitt.com/tax-help/tax-tips-topics/filing-your-taxes/standard-deductions-vs-itemized-deductions-which-shou...
Submission: On August 01 via api from US — Scanned from DE
Effective URL: https://www.jacksonhewitt.com/tax-help/tax-tips-topics/filing-your-taxes/standard-deductions-vs-itemized-deductions-which-shou...
Submission: On August 01 via api from US — Scanned from DE
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* Find an office * File Your Taxes File Your Taxes * File with a Tax Pro * File Online Yourself Find a Location * Resolve Tax Issues Resolve Tax Issues * Tax Resolution Services Resources * Back Taxes * CP2000 Notices * IRS Audits & Notices * IRS Collections * IRS Penalties & Penalty Relief * Unfiled Taxes Resolve Tax Issues * Tax Resources Tax Resources * Tax Calculators * Where’s My Refund * IRS Forms * Tax Talk Blog See all Tax Help * Refund Advance * Where Is My Refund * Promotions & Coupons * Careers * Search * Contact Us * Feedback * Log in | Sign up JH Accounts * MyJH Account * Online Filing Let’s find a tax preparation office for you Find my nearest or Enter ZIP Code View offices on map Menu ; * Log in | Sign up JH Accounts * MyJH Account * Online Filing * Search * * * File Your Taxes File Your Taxes * File with a Tax Pro * File Online Yourself Find a Location * Resolve Tax Issues Resolve Tax Issues * Tax Resolution Services Resources * Back Taxes * CP2000 Notices * IRS Audits & Notices * IRS Collections * IRS Penalties & Penalty Relief * Unfiled Taxes Resolve Tax Issues * Tax Resources Tax Resources * Tax Calculators * Where’s My Refund * IRS Forms * Tax Talk Blog See all Tax Help * Where's My Refund * Contact Us * Find An Office Let’s find a tax preparation office for you Find my nearest or Enter ZIP Code View offices on map 1. Jackson Hewitt 2. Filing Your Taxes 3. Standard Deductions vs. Itemized Deductions: Which Should You Choose? Filing your taxes STANDARD DEDUCTIONS VS. ITEMIZED DEDUCTIONS: WHICH SHOULD YOU CHOOSE? Jo Willetts, EA Director, Tax Resources Published on: April 25, 2023 SHARE ON SOCIAL One of the first steps when filing your annual tax return is to decide whether to take the standard deduction, or to itemize your deductions. The common goal for every taxpayer is to take the option that gives the lowest overall tax. So, which deduction is right for you? Let’s take a further look. WHAT ARE ITEMIZED DEDUCTIONS? An itemized deduction is an expense you can subtract from your adjusted gross income, which means you could pay less in taxes. If you’re wondering how much itemized deductions can save you, here’s a helpful tip to keep in mind. You should itemize deductions if your allowable itemized deductions are greater than your standard deduction, or if you must itemize deductions because you can’t use the standard deduction. According to the IRS, itemized deductions that taxpayers may claim include the following: * Unreimbursed medical or dental expenses that exceed 7.5% of adjusted gross income * State and local income or sales taxes * Real estate and personal property taxes * Home mortgage interest * Gifts to a qualified charity or non-profit * Personal casualty and theft losses from a federally declared disaster Should you choose to itemize these deductions, you may do so by filing a Schedule A (Form 1040). Your local Tax Pro can go over this with you and help you determine which option is best. WHAT IS A STANDARD DEDUCTION? A standard deduction is a specific dollar amount that reduces the amount of income on which you’re taxed. The standard deduction amount depends on your filing status and whether you’re 65 or older, are blind, and whether another taxpayer can claim you as a dependent. If you are 65 or older on the last day of the year and you don’t itemize deductions, then you are entitled to a higher standard deduction. If you’re like most filers and use Form 1040, you can find the standard deduction on the first page of the form. If you’re using Form 1040-SR, the U.S. tax return for senior citizens over the age of 64, then your standard deduction will be found on the last page of that form. If you’re wondering who qualifies for standard deduction, it’s important to read and understand the instructions for both Form 1040 and 1040-SR. Not all taxpayers qualify for a standard deduction. Those who don’t qualify include: * Married spouses filing separate returns, and one spouse itemizes. Both spouses must itemize if one does. * A taxpayer who files a return for a period of less than 12 months. * An individual who was a nonresident alien, or dual-status alien during the tax year. 2022 AND 2023 STANDARD DEDUCTION CHART Filing status 2022 standard deduction 2023 standard deduction Single $12,950 $13,850 Married filing jointly $25,900 $27,700 Married filing separately $12,950 $13,850 Head of household $19,400 $20,800 IS IT BETTER TO TAKE THE STANDARD DEDUCTION OR ITEMIZE DEDUCTIONS? It all depends on changes to current tax laws and how much you have in total deductions. If your itemized deductions add up to less than the standard deduction, it may make sense to take the standard deduction. A good way to make the best decision is to have an expert Tax Pro on your side, which is key to helping you file the most accurate return, and get your biggest possible refund. See your local Tax Pro for the best personalized help, however easy or complex your tax documents may be, the next time you’re ready to file. About the Author Jo Willetts, Director of Tax Resources at Jackson Hewitt, has more than 35 years of experience in the tax industry. As an Enrolled Agent, Jo has attained the highest level of certification for a tax professional. She began her career at Jackson Hewitt as a Tax Pro, working her way up to General Manager of a franchise store. In her current role, Jo provides expert knowledge company-wide to ensure that tax information distributed through all Jackson Hewitt channels is current and accurate. Jackson Hewitt Editorial Policy *This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department’s Circular 230. Most offices are independently owned and operated. Taxes done right. Guaranteed. Get 1-on-1 in-person tax help at your local Jackson Hewitt. Sit down with a skilled Tax Pro today who will help you get your maximum refund guaranteed. Start now RELATED ARTICLES * IRS UNIFORM DEFINITION OF A CHILD What is the Uniform Definition of a Child? How can I claim my child on my tax return? View more by | 06/19/2023 * CLAIMING TAX CREDITS FOR A NEW BABY OR ADOPTED CHILD Having or adopting a new child represents an enormous change in your life, but what does it mean for your taxes? View more by | 05/09/2023 * WHAT IS THE EARNED INCOME TAX CREDIT (EITC)? The Earned Income Tax Credit, or EITC, was designed to help taxpayers working hard to make ends meet. The EITC can reduce the amount of taxes you owe and can be refunded to you when the amount of credit is greater than your taxes. This can mean a bigger refund and, in many instances, that refund could be even more than you actually paid in withholding or estimated payments. View more by | 05/09/2023 * IRS UNIFORM DEFINITION OF A CHILD What is the Uniform Definition of a Child? How can I claim my child on my tax return? View more by | 06/19/2023 * CLAIMING TAX CREDITS FOR A NEW BABY OR ADOPTED CHILD Having or adopting a new child represents an enormous change in your life, but what does it mean for your taxes? View more by | 05/09/2023 * WHAT IS THE EARNED INCOME TAX CREDIT (EITC)? The Earned Income Tax Credit, or EITC, was designed to help taxpayers working hard to make ends meet. The EITC can reduce the amount of taxes you owe and can be refunded to you when the amount of credit is greater than your taxes. This can mean a bigger refund and, in many instances, that refund could be even more than you actually paid in withholding or estimated payments. View more by | 05/09/2023 * IRS UNIFORM DEFINITION OF A CHILD What is the Uniform Definition of a Child? How can I claim my child on my tax return? View more by | 06/19/2023 * CLAIMING TAX CREDITS FOR A NEW BABY OR ADOPTED CHILD Having or adopting a new child represents an enormous change in your life, but what does it mean for your taxes? View more by | 05/09/2023 * WHAT IS THE EARNED INCOME TAX CREDIT (EITC)? The Earned Income Tax Credit, or EITC, was designed to help taxpayers working hard to make ends meet. The EITC can reduce the amount of taxes you owe and can be refunded to you when the amount of credit is greater than your taxes. This can mean a bigger refund and, in many instances, that refund could be even more than you actually paid in withholding or estimated payments. 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