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Tax Season Hot Topic: The Standard Deduction vs. Itemized Deductions
A tax attorney at law firm Hoogendoorn & Talbot LLP explains the difference between itemizing deductions versus taking the standard deduction.
By: Hoogendoorn & Talbot LLP
Floss, an Associate Attorney at Chicago law firm (http://www.hoogendoorntalbot.com/
“Understanding the difference between itemizing deductions versus taking the standard deduction is key to understanding how your income tax is calculated,”
The easiest way to determine the categories of expenses that may be itemized is to review IRS Form Schedule A. In summary, the types of expenses reported on this form are as follows: medical expenses, taxes paid, interest paid, gifts to charity, casualty and theft losses, job expenses and other miscellaneous deductions.
Floss advises clients to keep detailed accountings of all expenses that will be listed as itemized deductions. “Certain categories of expenses have their own ‘substantiation’
Each of these categories has its limits and considerations. Changes to the Tax Code during the past two years have imposed additional limits on the total amount of deductions a taxpayer can claim on Form 1040. Factors such as the taxpayer’s filing status and AGI are key in determining whether the allowed itemized amount will be restricted under current tax law.
Floss and the tax experts at Hoogendoorn & Talbot encourage taxpayers to consult IRS publications listed on the IRS website, as well as competent tax professionals, for further guidance on this topic.
Hoogendoorn & Talbot LLP, founded in 1985, is a law firm that focuses on representing families, business entities and charitable organizations. Each year, the firm and its partners donate a portion of their time, talent and revenue both to secular not-for-profit entities and faith-based organizations.
Hoogendoorn & Talbot LLP
Page Updated Last on: May 14, 2015