{"id":1115,"date":"2013-01-14T19:54:42","date_gmt":"2015-12-18T19:43:33","guid":{"rendered":"\/it-worth-it-itemize-your-taxes"},"modified":"2025-02-11T02:32:41","modified_gmt":"2025-02-11T10:32:41","slug":"it-worth-it-itemize-your-taxes","status":"publish","type":"post","link":"https:\/\/www.irs.com\/en\/it-worth-it-itemize-your-taxes\/","title":{"rendered":"Is It Worth It To Itemize Your Taxes"},"content":{"rendered":"

While the U.S. tax code is rife with loopholes, few people take advantage of them. Only about a third of taxpayers itemize their deductions<\/a>, according to the federal Internal Revenue Service. In 2010, less than 30 percent of those making between $30,000 and $50,000 itemized deductions, according to an analysis by CNN. Meanwhile, 96.8% of those making $250,000-plus itemized.<\/p>\n

The issue<\/h3>\n

Many taxpayers are giving Uncle Sam more money than they should, either out of haste or because the process of documenting tax deductions<\/a> and filling out the 1040 income tax form<\/a> intimidates them.<\/p>\n

\u201cSometimes people get in a rush \u2013 they just want to finish and file their taxes,\u201d says Lisa Greene-Lewis, a certified public accountant and blog editor at TurboTax, the tax software company.<\/p>\n

So, to simplify things and speed the process, many taxpayers just take the standard deduction<\/a> \u2013 $5,950 for a single taxpayer; $11,900 for a married couple filing jointly.\u00a0 But the average amount of deductions for those who did itemize was more than $25,000, according to an analysis by CCH, a provider of tax, accounting and audit information, software and services for professionals in accounting firms and corporations.<\/p>\n

>><\/span>\u00a0Start Your FREE E-file<\/span><\/strong><\/a><\/p>\n

The breakdown<\/h3>\n

The amount of deductions you claim can substantially lower your tax bill. For example, itemized deductions totaling $10,000 reduce taxes for a person in the 15 percent bracket by $1,500 \u2013 enough for a big screen HDTV. Additional deductions of $10,000 would cut taxes by $3,500 for a person in the 35 percent bracket.<\/p>\n

Coming up with itemized deductions that will add up to more than the standard deduction is easier than you might think. There are about 350 deductions available, says Greene-Lewis. The biggest for most people is the mortgage interest deduction. The average mortgage interest deduction for households with an adjusted gross income of $50,000 to $100,000 was more than $10,000.<\/p>\n

Homeowners can also deduct property taxes<\/a>, Greene-Lewis notes. State and local income taxes can also be deducted.<\/p>\n

The verdict<\/h3>\n

This is a no-brainer. Spend $40-$50 on tax preparation<\/a> software such as TurboTax \u2013 and there are others from which to chose \u2013 and an hour at the computer to figure out if your possible itemized deductions add up to more than the standard deduction<\/a>.<\/p>\n

Pay your fair share, but don\u2019t pay more than that.<\/p>\n","protected":false},"excerpt":{"rendered":"

While the U.S. tax code is rife with loopholes, few people take advantage of them. Only about a third of taxpayers itemize their deductions, according to the federal Internal Revenue Service. In 2010, less than 30 percent of those making between $30,000 and $50,000 itemized deductions, according to an analysis by CNN. Meanwhile, 96.8% of […]<\/p>\n","protected":false},"author":1,"featured_media":1116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,9,37,11,12,39],"tags":[41],"class_list":["post-1115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tools-forms","category-e-filing-taxes","category-paying-taxes","category-tax-forms","category-tax-preparation","category-tax-strategies","tag-efile"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/1115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/comments?post=1115"}],"version-history":[{"count":6,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/1115\/revisions"}],"predecessor-version":[{"id":9456,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/1115\/revisions\/9456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/media\/1116"}],"wp:attachment":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/media?parent=1115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/categories?post=1115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/tags?post=1115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}