 One important decision you’ll need to make is whether to take the standard deduction or the itemized deduction 🤔. We’ll break down the differences between the two and help you decide which option is best for you. The standard deduction is a fixed dollar amount that you can take off your taxable income. For the tax year 2020, the standard deduction is $12,400 for single filers and $24,800 for married couples filing jointly👩🏼❤️💋👨🏻. The standard deduction is often the default choice for taxpayers because it’s simple and requires no extra documentation. On the other hand ✋🏻, the itemized deduction allows you to deduct specific expenses from your taxable income, such as mortgage interest, property taxes, and charitable donations 🏠. However, itemizing requires more work and documentation than taking the standard deduction. You’ll need to keep detailed records, receipts, and invoices to support your deductions.  The answer depends on your personal situation. If you have fewer deductions to claim and your itemized deductions are less than the standard deduction, then taking the standard deduction may be the best choice. However, if you have significant expenses 💰 to claim or your itemized deductions exceed the standard deduction, then itemizing will likely provide a greater tax benefit. It’s essential to note that preparing your taxes with itemized deductions requires more work and attention to detail 👀. Consider working with a qualified tax professional who can help you navigate the complexities of tax laws and ensure accurate deductions. In conclusion, making the right decision between the standard and itemized deductions can significantly impact your tax savings. Consider your options carefully, and don’t hesitate to seek expert advice and contact us if needed. 😉 Best regards,  Visit Our Website At Renata’s Bookkeeping, we’re more than just experts in organizing your books and finances. We’re here to provide comprehensive support and help you achieve all your financial goals. Explore the diverse range of benefits, services, and content we have waiting for you. Check it out now! |