Get Your 1098 From Your Lender Or Mortgage Servicer
- $12,400 for single filing status
- $24,800 for married, filing jointly
- $12,400 for married, filing separately
- $18,650 for heads of households
If you choose an itemized deduction, you can pick and choose from various deductions. These include mortgage interest, student loan interest, charitable contributions, medical expenses and more. To itemize your deductions, you’ll need to fill out additional forms to list each one and provide records, receipts and other documents that validate them.
So how do you decide which one to do? It all comes down to which method saves you more money. If your standard deduction saves you more money than your itemized deduction, take the standard deduction. Or vice versa.
Here’s an example. These deductions add up to $8,200. In this case, you would want to take the standard deduction of $12,400 instead, because you would get $4,000 more deducted from your taxable income.
Now let’s say your mortgage interest is $11,000 and the other deductions remain the same. Your itemized deductions would total $13,200. In this case, you would want to take the itemized deduction, because it reduces your taxable income $800 more than the standard deduction would.
Don’t forget: If you’re paying someone to prepare your taxes for you, it may cost more to have them itemize your taxes since this requires more work. Make sure you factor in the extra cost when deciding which method saves you the most money.
You itemize the following deductions as a single individual: mortgage interest ($6,000), student loan interest ($1,000) and charitable donations ($1,200)
One of the most important things to know about taking either the itemized or standard deduction is that you cannot take both. „Get Your 1098 From Your Lender Or Mortgage Servicer“ weiterlesen