That is a question many taxpayers have during income-tax filing season. Claiming the standard deduction can be easier since it’s a set amount and you don’t need to have expense records to claim it. But itemizing could save you taxes. It depends on your personal situation.
When you itemize, you deduct the actual dollar amount of certain types of expenses, subject to various tax law limitations. Common expenses that can be itemized include:
- Charitable contributions
- Qualified mortgage interest
- Property taxes
- State and local income taxes
- Unreimbursed medical expenses for yourself, your spouse, and your dependents
- Certain miscellaneous expenses
Unlike most other itemized expenses, no deduction is allowed for expenses in the medical and miscellaneous categories until your total expenses in that category exceed a “floor” (a specified percentage of your adjusted gross income). Only the amount in excess of the floor is deductible.