income tax itemized deductions

Should I itemize or not?

That is the question.

Your ChoicesItemizing

Taking the Standard Deduction

2014Standard Deduction

The 2014 Standard Deduction for a married couple is $12,400.

Unless all your deductions exceed that figure, you probably shouldn’t itemize.

What about medical expenses?

Medical deductions have what is called a 10% floor (7.5% for those over 65).

This means that medical deductions less than 10 percent of your adjusted gross income (AGI) are not deductible.

Example – a couple with a $50,000 AGI cannot deduct the first $5,000 in medical expenses (or $3,750 for those over 65).

Largest DeductionsMortgage Interest

Real Estate Taxes

Sales Tax (or State Income Tax)

Charitable Contributions

Will Itemization Benefit You?

Remember, if you request a tax preparer to tally your receipts, you will likely be charged for the time spent doing that, whether or not it you have enough deductions to exceed the standard deductions.

Generally, unless you own your home or have a significant amount of charitable contributions or medical expenses, the Standard Deduction is best for you.

For more informationIf you need more information about

whether it’s best for you to itemize or take the Standard Deduction, contact Derland Bahr CPA at 254-5724

Or visit DerlandBahrCPA.com.