Should you itemize your taxes?
Most taxpayers take the standard each year. The Tax Policy Center estimates that only about 10% of households itemize their taxes. This is in large part because the standard deduction is $15,000 per person for individual filers ($30,000 combined for married households). That makes it large enough that, in most cases, only the wealthiest households have enough qualified spending to exceed the standard deduction in the first place.
However, for households that do take line-item deductions, the tax benefits can be significant. In fact, a new study published by SmartAsset finds that in some states households reduce their taxable income by $50,000 to upwards of $100,000 through itemized deductions.
With tax season coming up, is this something that should be on your radar? Here’s what you should know. You can also speak to a financial advisor if you’re interested in speaking about your taxes with a professional.
Eric Reed | Yahoo Finance