IRS Tax Tips: Itemize Or Standard Deduction

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BOSTON (WBZ-AM) -- Close to 70% of taxpayers use the standard deduction when they file their federal tax return because it’s easier and requires less effort. But you may be able to lower your tax bill if you itemize especially this year for the new tax laws increase the standard deductions for 2018.

You can find out which way saves you the most by figuring your taxes both ways.

Figure Your Itemized Deductions. Add up deductible expenses you paid during the year. These include expenses such as:

  • Home mortgage interest
  • State & local income taxes or sales taxes (but not both) which will be capped at $10,000 in 2018
  • Real estate and personal property taxes e.g. excise tax on your car
  • Gifts to charities
  • Casualty or theft losses
  • Unreimbursed medical expenses over 7.5% of income
  • Unreimbursed employee business expenses over 2% of income

Special rules and limits apply. Visit and refer to Publication 17, Your Federal Income Tax, for more details.

Know Your Standard Deduction. If you don’t itemize, your basic standard deduction for 2017 depends on your filing status:

  • Single $6,350
  • Married Filing Jointly $12,700
  • Head of Household $9,350
  • Married Filing Separately $6,350
  • Qualifying Widow(er) $12,700

If you’re 65 or older or blind, your standard deduction is higher than these amounts. If someone can claim you as a dependent, your deduction may be limited.

Check the Exceptions. There are some situations where the law does not allow a person to claim the standard deduction. This rule applies if you are married filing a separate return and your spouse itemizes. In this case, you can’t claim a standard deduction. You usually will pay less tax if you itemize. See Publication 17 for more on these rules.

Use the IRS ITA Tool. Visit and use the Interactive Tax Assistant tool. It can help determine your standard deduction. It can also help you figure your itemized deductions.

File the Right Forms. To itemize your deductions, use Form 1040 and Schedule A, Itemized Deductions. You can take the standard deduction on Forms 1040, 1040A or 1040EZ.

Use IRS Free File. Most people qualify to use free, brand-name software to prepare and e-file their federal tax returns. IRS Free File is the easiest way to file. Free File software will help you determine if you should itemize and will file the right tax forms based on your answers. It will do the math and e-file your return all for free.

Check your other e-file options if you can’t use Free File.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on

Additional IRS Resources:

IRS YouTube Video: 

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