estimate which is better - standard or itemized deduction?

Forum|Forum|3 years ago
April 11, 2023
2 replies
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To choose whether to itemize deductions, or take the standard, can TT suggest a simplified calculation one might use to get a feel for which direction is most likely to be best?

If TT could give some guidance to make an initial choice, by for example, giving a list of those major categories that have been typical of mid-range of filers. Even if the process is grouped by state, based on which items that state taxes. The exercise would only need to get within ± 50% of the likely result for the user to be able to make an informed decision.

What's the worst that could happen? To learn you really should take the full test Q&A... which is the only choice now.

Best answer by VolvoGirl

You should have a rough idea if your itemized deductions will be more than the Standard Deduction. And some deductions like taxes paid and medical are limited. You should still enter all your deductions in case you can itemize on a state return.

For 2022 the standard deduction amounts are:

Single 12,950 + 1,750 for 65 and over or blind (14,700)

HOH 19,400 + 1,750 for 65 and over or blind (21,150)

Joint 25,900 + 1,400 for each 65 and over or blind (27,300/28,700)

Married filing Separate 12,950 + 1,400 for 65 and over or blind (14,350)

robtm

Level 10

TT doesn't know which is best until you enter all your itemized deductions. It will then tell you which is best for you to take, standard or itemized. For most people unless they have a large number of deductions it is best to take the standard deduction.

Anonymous

@robtm

Well, of course. But that misses the point of the question. Strictly speaking -- the only language accountants know -- you must go through the full gauntlet before they can say anything!

@VolvoGirl Thanks for the helpful response.