My husband and I file married, joint. The standard dedcution I realize is 10,300. We just purchased a house last year but it was in June, so our points and interest and all that are less than 10,300. Does that mean that they don't count?
2007-02-12 02:52:34 · 7 answers · asked by enigma 2 in Business & Finance ➔ Taxes ➔ United States
Yes you compare your itemized deduction to the standard and take which ever is more. If the Standard is higher it is more beneficial to you to use that as it allows you to lower your taxable income. Its an either or situation, so you would not beable to take your home mortgage interest and other itemized deductions
2007-02-12 02:59:36 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Yes, that's what it means. You have a choice of taking the standard deduction or itemizing.
2007-02-13 01:11:44 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
All of your deductions including charitable contributions medical expenses and mortgage interest must add up to more then 10,300 in order to itemize
2007-02-12 11:01:10 · answer #3 · answered by Mike 4 · 1⤊ 2⤋
That's correct. You claim the larger of your itemized deductions or the standard deduction. Since your standard deduction is larger, that's what you'd claim for this year.
2007-02-12 11:02:57 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋
That is correct. You can choose to either claim standard deduction or itemized deductions. So you will want to use whichever is higher.
2007-02-12 10:58:16 · answer #5 · answered by jseah114 6 · 2⤊ 1⤋
You should take the higher amount - you can say it "doesn't count" but don't look a gift horse in the mouth. Besides, it was only a part year. 2007 will be different
2007-02-12 11:11:32 · answer #6 · answered by Dizney 5 · 0⤊ 2⤋
Don't forget to add state income tax paid into that calculation.
Review the whole schedule (schedule B?) to see what else can beef up that number.
2007-02-12 15:49:14 · answer #7 · answered by Quixotic 3 · 0⤊ 1⤋