When you are estimating your itemized deductions keep the following in mind.
The State and Local Tax deduction does max out at $10,000 regardless of your income. So even if you have $20,000 in state and local taxes, you will only get a $10,000 deduction.
Medical expenses are only deductible for the amount in excess of 7.5% of your AGI. So, if your AGI is $100,000, only your medical expenses over $7,500 will count towards your Itemized Deductions.
Example. If your total insurance premiums and other medical expenses are $5,000 and your adjusted gross income is $50,000, you would get a benefit from $1,250 of the total medical expenses you enter.
$50,000 x.075=$3,750.
$5,000-$3,750=$1,250
You may deduct cash contributions up to 100% of your AGI to Qualifying Charitable Organizations but other types of donations may be limited. This will all depend on the type of items and the type of charities.
The 2021 Standard Deductions to compare to are as follows:
- Married Filing Joint (MFJ) $25,100
- Married Filing Separate (MFS) $12,550
- Head of Household (HOH) $18,800
- Single $12,550
- Both over 65 MFJ $27,800
- Over 65 MFS $13,900
- Over 65 Single $14,250
- Over 65 HOH $19,500
Blind and MFJ or MFS add $1,350
Single or HOH if blind add $1,700
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