Doryanne Hamel addresses the question. The answer may save you time gathering unnecessary documents.
Under a new tax law that became effective in 2018, there was an increase in the standard deduction. For 2019, the standard deduction is $12,200 for a single taxpayer and $24,400 for a married couple filing a joint return. With the increase in the standard deduction, fewer people will benefit from itemizing. There are a number of expenses to consider that may affect whether you itemize deductions on your tax return. They include:
- Home mortgage interest on up to $750,000 in debt, in most cases, and points
- State and local taxes, including sales taxes and property taxes limited to $10,000
- Medical/Dental expenses in excess of 7.5% of adjusted gross income
- Investment interest to the extent of investment income
- Charitable contributions, in most cases subject to a 50% of adjusted gross income limit
- Casualty, disaster and theft losses attributable to a federally declared disaster.
By doing a quick assessment, you may determine if it is worth the time to gather the necessary documents you will need for itemizing deductions on your tax return. For more detailed information, please contact us at 401-831-0200, or [read this] helpful article by smartasset.