Standard Deduction MFJ

Since Married Filing Jointly Standard Deduction is $24,400 and I know my itemized deductions are under $10,000, is entering the itemized deductions just a waste of time? Also, what about donations to Goodwill, would these also apply to itemized deductions? Thanks

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Yes you don't have to enter deductions if you know you won't be itemizing.  But you still might be able to itemize on the state return.  So you maybe should enter them.

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If you want to skip entering your itemized deductions you can do that.  Many people will not have enough itemized deductions this year to itemize, and will just be getting their new higher standard deduction.  The thing is, though, that some of those deductions could make a difference on a state return even if they do not affect your federal return.  Information flows from your federal return to your state return, so it might not be a bad idea to go ahead and enter them anyhow.  It cannot hurt you.

 

The following states allow you to itemize deductions on just the state return: Alabama, Arizona, Arkansas, California, Delaware, Hawaii, Idaho, Iowa, Kentucky, Minnesota, Mississippi, Montana, New York, North Carolina, Oregon, and Wisconsin.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
herbside
New Member

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I found that after 7000+ in home mortgage interest PLUS $7000+ in real estate taxes and several other small things, that our donations would have had to add up to $7500 to BREAK EVEN.  In other words, it's not worth finding all those donations unless you have a lot of valuable ones.  I've even considered making all of our donations every other year.  Even then though, they might not be enough.

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@herbside wrote:

I found that after 7000+ in home mortgage interest PLUS $7000+ in real estate taxes and several other small things, that our donations would have had to add up to $7500 to BREAK EVEN.  In other words, it's not worth finding all those donations unless you have a lot of valuable ones.  I've even considered making all of our donations every other year.  Even then though, they might not be enough.


Yes, and for that reason, many taxpayers pay current years property tax and also the 2nd property tax payment for the previous year in January and the next years 1st payment in December so as to double the property tax deduction and then itemize every other year.  However, that will not help if the $10,000 SALT cap is exceeded.   The same can be done with some medical expenses.

 

 

For 2018 and 2019 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.


2019 standard deductions

$12,200 Single
$18,350 Head of Household
$24,400 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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Thank you.