It depends Josephine. You enter the mortgage interest deduction if you itemize your deductions. However, if you do not have enough deductions to itemize then you claim the standard deduction.
Claiming the standard deduction is certainly easier. To itemize, you need to keep track of what you spent during the year on deductible expenses like out-of-pocket medical expenses and charitable donations. You also need to maintain supporting documentation, such as receipts; bank statements; medical bills; acknowledgment letters from charitable organizations; and tax documents reporting the mortgage interest, real estate taxes, and state income taxes you paid during the year. Then you need to determine whether your available itemized deductions exceed the standard deduction for your filing status.
That might sound like a lot of work, but it can pay off if your total itemized deductions are higher than the standard deduction.
For 2023, the standard deduction numbers to beat are:
- Single taxpayers: $13,850
- Married taxpayers filing a joint return: $27,700
- Heads of household: $20,800
Those are the numbers for most people, but some get even higher standard deductions. If you're 65 or older or blind or both, you may increase your standard deduction by the amount listed below.
Should I Itemize My Deductions or Take Standard Deductions
If you enter all of the information requested by TurboTax, the software will automatically choose the best option for you.
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