Updated: Dec 12, 2022
Deductions reduce taxable income. You have a choice between taking a standard deduction or itemizing your deductions. When you itemize, you reduce taxable income by the value of certain expenses deductible under U.S. tax law. For example, if you pay mortgage interest, you can deduct the interest paid — but only if you itemize.
To decide which deductions to take, compare the value of the standard deduction versus the total value of your itemized deductions. For 2021, the standard deduction amounts are:
$12,550 if you file as single or married filing separately
$18,800 if you file as head of household
$25,100 if you file as married filing jointly
Because tax reform significantly increased the standard deduction, you may find your itemized deductions don’t exceed the standard deduction amount for your filing status.
Want to schedule an appointment for assistance,
To begin self onboarding, Click here: