Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses a hot topic: itemized deductions vs. standard deduction. Which is better for you?
Deciding whether to itemize deductions or take the standard deduction depends on your specific financial situation. For the 2024 tax year, the standard deduction amounts are:
- $14,600 for single filers
- $29,200 for married couples filing jointly
- $21,900 for heads of household
You may benefit from itemizing if your total itemized deductions exceed the standard deduction for your filing status. So, which deductions can you claim when itemizing?
- Medical expenses exceeding 7.5% of your adjusted gross income (AGI)
- State and local taxes (SALT), up to a $10,000 limit
- Mortgage interest (on the first $750,000 or $375,000 if married filing separately)
- Charitable contributions, including cash and non-cash donations and volunteering expenses
- Casualty and theft losses (if in a federally declared disaster area)
If your total itemized deductions are less than the standard deduction for your filing status, just take the standard deduction. If you’re unsure, consulting a tax professional is always a good idea. Optima Tax Relief has over a decade of experience helping taxpayers get back on track with their tax debt.
Tune in next Friday when Phil discusses important updates for small businesses coming in 2025.
If you need tax help, contact us today for a Free Consultation