The tax tip for today is all about Itemizing. Many people have asked me Brent when should I itemize? A common cause for this question is that some people give me charitable donation paperwork. There are two ways to get a deduction from the IRS one is the standard deduction the other is the itemized deduction. The standard deduction is based on inflation and generally goes up each year a slight amount. Many of these items are based on percentages. Certain items are allowed on your itemized deductions. The major ones are interest on a mortgage, real estate taxes, charitable donations, and medical expenses over 7.5 percent of your adjusted gross income. So how does one decide which one to take? The IRS tells us that we can take either so we simply take whichever one gives us a higher deduction. Usually the Itemized deduction is higher when we own a home and have mortgage interest.
If you have a question for me or if you need my services please contact me at 801-651-0523 or email brentkillian29@gmail.com
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