So my wife and I want to do married filing separately (due to keeping her student loan payments low). I paid for a procedure for her which is covered under Medical Expenses. My question relates to whether it'd be worth it to do standard or itemized deduction. I understand the standard deduction is 12550 for someone married filing separately.
The part where I get confused is where I see that if I itemize the medical expenses then that means her deduction is 0 (is this true?). I'd be able to itemize deductions of $24,500, and she'd have nothing to itemize.
So should I itemize my deductions, or should we just both take the standard deduction of 12550 each (b/c 12550 x 2 is greater than 24500 + 0)?
Thanks.
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By the way the $24500 amount refers to the amount after the 7.5% medical expenses requirement.
The answer to your question " whether it'd be worth it to do standard or itemized deduction" can only be determined by yourself and your wife.
Generally, the best way to make this decision is to prepare "test" returns using the standard deduction and then use itemized deduction. Once you have done this you can compare how each affects your tax situation and select the best methods for your situation.
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