My itemized deductions are almost 3x greater than my standard deduction. Go with itemized?
2007-04-03 13:36:38 · 9 answers · asked by Melandi 2 in Business & Finance ➔ Taxes ➔ United States
better to itemize than claim the standard deduction if it saves you more money in taxes.
2007-04-03 14:51:18 · answer #1 · answered by Ola 4 · 1⤊ 0⤋
Go with itemized if that is the case. If you lived in Colorado, which is where i live so I will use it as an example.
If you have the standard deduction of single 5150 you said your itemized are 3 times that. Which is at a minmum 15450. The difference is 10,300. Assuming you are in the 25% bracket, as that is easy math, the state tax is 4.7%.
Itemizing will lower your tax by $3,059.00
However the standard deduction is a better deal cause you don't have to pay it to get it. All of your itemized deductions are actual out of pocket expenses, your standard is a free deduction.
2007-04-03 15:05:04 · answer #2 · answered by Jerry 3 · 1⤊ 0⤋
the better your deductions, the decrease your federal taxes would be. severe scientific expenses or very own loan activity money (or different deductible costs) might have larger your itemized deductions from $28 to better than $5,a hundred and fifty. if so you will possibly % the itemized deduction. i'm not from ok, yet i might guess that as quickly as you record your ok state taxes the quantity you paid in federal taxes may well be deductible. The utility is prompting you to calculate your state taxes formerly you % the primary deduction. the objective is to decrease your finished taxes. it fairly is accessible larger federal taxes paid might positioned you in a -0- state tax bracket. The ok Dept of Rev might desire to have on line varieties which you could use. Ain't submitting taxes exciting!
2016-11-07 03:56:50 · answer #3 · answered by ? 4 · 0⤊ 0⤋
If your itemized deductions are larger than the standard deduction, go with that. You will save more in taxes. Keep in mind that some itemized deductions are only allowed when they exceed a certain percentage of your adjusted gross income.
2007-04-03 13:48:42 · answer #4 · answered by Brian G 6 · 2⤊ 0⤋
Well, yes - if your itemized deductions are higher than your standard, then you'll pay less tax if you itemize.
2007-04-03 14:18:01 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
If your itemized deductions are larger, you should be saving a lot more in taxes, unless you are in the AMT.
2007-04-03 13:44:15 · answer #6 · answered by tma 6 · 1⤊ 0⤋
Itemized but depending on your situation you might get hit with the criminal AMT, designed to tax "rich" people like you.
2007-04-03 13:54:50 · answer #7 · answered by Anonymous · 0⤊ 1⤋
I always itemize because the laws change frequently.
2007-04-03 13:40:41 · answer #8 · answered by beez 7 · 0⤊ 2⤋
Do whichever saves you money. It's a lot more work to itemize, but it's worth it to keep YOUR money.
2007-04-03 13:41:56 · answer #9 · answered by ISOintelligentlife 4 · 2⤊ 1⤋