Should You Itemize Your Deductions?

Tax season is already upon us, and if you think this might be the year to itemize deductions, here are some things to keep in mind, courtesy of a guide by H&R Block.

Itemizing deductions is a little more involved than claiming the standard deductions, so not everyone wants to take on the task. But if you do, it could mean more money in your pocket.

For instance, last year 92 million taxpayers claimed the standard deduction and claimed a total of $700 billion. Only 45 million taxpayers itemized their deductions, but they claimed more than $1 trillion. That means on average those 92 million taxpayers were claiming only $7,608, while the 45 million who itemized claimed three times that at roughly $22,222.

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Source: H&R Block

Here are some things to consider if you’re trying to decide which is best for you: do you pay interest or real estate taxes on your home? Can you claim large unreimbursed employee business expenses? Did you suffer a large uninsured casualty or theft loss during last year? Did you make a large charitable donation?

Those are the most common items to keep an eye on, but there are some lesser known ones. For instance, those with celiac disease could be able to deduct the excess cost of gluten-free food over non-gluten free. The cost is deductible as a medical expense and must exceed 7.5% of adjusted growth income.

— but only if the college student is not claimed as a dependent.

Also, estate tax can be deducted in some situations, as well as assets purchased by business owners for the business and student loan interest paid by mom and dad Read more:

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