Itemize or Standard Deduction?

[UKUGA]

When you file your federal taxes, do you itemize or take the standard deduction?

If you itemize, what is driving your itemized list of deductions (SALT, charity, medical, mortgage interest, etc?).

I will admit, I was initially surprised at how many people told me they no longer itemize since the 2017 tax law changes.

FWIW, I still itemize.

Thanks to all who participate.

 

[Ryan Lemonds Hair]

Since we no longer have child care the standard is usually more than our itemized deductions.

 

[mdlUK.1]

I'm crazy, I guess. I still itemize every year but still end up with the standard deduction.

 

[BlueBallz_rivals30790]

Since the standard deduction went up, I don’t have enough expenses to itemize.

 

[megablue]

"The TCJA eliminated or restricted many itemized deductions for 2018 through 2025. This, together with a higher standard deduction, reduced the number of taxpayers who itemize deductions. In 2017, 31 percent of all individual income tax returns had itemized deductions, compared with just 9 percent in 2020."

https://taxpolicycenter.org/briefin...minated or restricted,just 9 percent in 2020.

There may be more current data, but I couldn't find it ...

 

[Ryan Lemonds Hair]

The one area it seems itemizing helps us is for KY State income tax.

 

[LineSkiCat14]

I have far too many write-offs for standard deduction. Let me tell you, while the gov't has it's hand in my pocket, I have one hand in theirs.

 

[BC_Wader]

We do the standard deduction. I believe it's around 29,000 for married filing jointly. We have no way near that amount to write off. Plus it saves the headache of not having to keep every single receipt or looking for needles in haystacks to get over that number. Not sure the amount would be for single filers.

 

[downw/ball-lineD]

How about we just do away with THE most UNAMERICAN law ever passed? Then no one has to share THEIR personal info with our omnipotent/oppressive gov't. Won't have to worry about what type of Deduction to take. One national sales tax. Choose to pay it if you purchase the item......or don't. Time to get back to a free society.

 

[Hank Camacho_rivals115797]

No idea. That's why I pay an accountant.

 

[UKGrad93]

The one area it seems itemizing helps us is for KY State income tax.

Same in iowa

 

[vhcat70]

There shouldn't be itemized deductions. Spend your money however you like, but pay income tax on your income.

 

[UKUGA]

No idea. That's why I pay an accountant.

You don’t read what you sign?

 

[BGCATFAN2012]

Us poor folk just push all of our chips to the center and tell the government to give us back whatever they see fit.

 

[BC_Wader]

Us poor folk just push all of our chips to the center and tell the government to give us back whatever they see fit.

What everyone needs to do is figure out how to get nothing back on our returns. Why would anyone want to give the government an interest free loan on their money is baffling. Get that money every week in your pocket.

 

[BigBlueFanGA]

How about we just do away with THE most UNAMERICAN law ever passed? Then no one has to share THEIR personal info with our omnipotent/oppressive gov't. Won't have to worry about what type of Deduction to take. One national sales tax. Choose to pay it if you purchase the item......or don't. Time to get back to a free society.

I can't agree with this, at all. There are too many things that must be purchased which shifts the tax burden to the poorest among us.

 

[UKUGA]

I can't agree with this, at all. There are too many things that must be purchased which shifts the tax burden to the poorest among us.

There are ways to address that.


1) eliminating all of the other taxes reduces the cost of goods significantly. Thus, when you pay the tax, you won’t be paying the tax on the price you see today.

2) “credits” or “vouchers” can be provided to cover the tax on the purchase of basic items that all are expected to purchase (bread, milk, eggs).

It’s not an “under thought” system.

I recognize why people are hesitant to see a wholesale shift in our tax structure.

Unfortunately, ~ 100 years ago, too many people were will to take on an income tax, and here we sit in a hot mess of a situation, with an oppressive IRS, a $2 trillion deficit and $36.5 trillion in debt.

 

[UKUGA]

What everyone needs to do is figure out how to get nothing back on our returns. Why would anyone want to give the government an interest free loan on their money is baffling. Get that money every week in your pocket.

Correct.

If you are on payroll, and your income/personal situation doesn’t change much YOY, then it’s pretty easy to adjust your withholdings and reduce what you are paying throughout the year.