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What role do tax deductions (charitable gifts and traditional IRA $$) have when using a standard deduction?
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What role do tax deductions (charitable gifts and traditional IRA $$) have when using a standard deduction?
On your tax return, IRA contributions that are deductible can be included whether or not you take the standard deduction. But charitable contributions are only deductible if you itemize your expenses instead of taking the standard deduction.
Regarding Itemized Deductions: there is a choice to either utilize the standard deduction or to itemize your deductions. Itemized deductions include some of these items: state and local taxes paid, mortgage interest paid, mortgage insurance premiums paid, medical expenses (limited to 7.5% AGI floor), charitable contributions, and miscellaneous expenses (limited to 2% AGI floor) of job-related expenses, tax preparation fees, etc. Therefore, when taking the standard deduction, charitable contributions will not be included as deductions on your return.
Other deductions that are not part of itemized deductions are allowed over and above the standard deduction on your return to reduce your taxable income. Deductible IRA contributions are one of these deductions.
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What role do tax deductions (charitable gifts and traditional IRA $$) have when using a standard deduction?
On your tax return, IRA contributions that are deductible can be included whether or not you take the standard deduction. But charitable contributions are only deductible if you itemize your expenses instead of taking the standard deduction.
Regarding Itemized Deductions: there is a choice to either utilize the standard deduction or to itemize your deductions. Itemized deductions include some of these items: state and local taxes paid, mortgage interest paid, mortgage insurance premiums paid, medical expenses (limited to 7.5% AGI floor), charitable contributions, and miscellaneous expenses (limited to 2% AGI floor) of job-related expenses, tax preparation fees, etc. Therefore, when taking the standard deduction, charitable contributions will not be included as deductions on your return.
Other deductions that are not part of itemized deductions are allowed over and above the standard deduction on your return to reduce your taxable income. Deductible IRA contributions are one of these deductions.
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