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40% of U.S. workers have saved
less than $25,000 for retirement.*

*2019 Retirement
Confidence Survey, EBRI

Only 42% of Americans know how
much money to save for retirement.*

*2019 Retirement Confidence Survey, EBRI

43% of retirees left
the workforce earlier
than planned.*

*2019 Retirement
Confidence Survey, EBRI

Itemizing Deductions

Leave it to the IRS to create a complex maze of instructions and exceptions in the individual return.

What are Itemized Deductions?

The IRS gives each taxpayer, with exceptions of course, a Standard Deduction amount on their return. The Standard Deduction is based on Filing status and Age. With exceptions for dependents of another person and persons Married Filing Separately that live together. We will go with the basics.

                                                  Standard       Blind/Elderly
Single                                          6,300             1,550
Head of Household                       9,250             1,550
Married                                      12,600            1,250
Standard Deduction for Dependents: $1,050

If you have deductions allowed by IRS that exceed the Standard amount then you may take the greater of your" Itemize" your deductions.

Some of the items that are commonly used on Schedule A, or itemized deductions are:

  • Mortgage Interest
  • Real Estate Taxes
  • Personal Property Tax
  • Charitable Contributions
  • Employee Business Expenses include: Union Dues, Uniforms, Driving Between 2 jobs. Limits Apply
  • Casualty Losses: Limit Apply
  • Medical Expenses include: Doctors, Dentist, Eye, Hearing, Prescriptions, Insurance Premiums ( must meet requirements) and miles to and from for medical purposes. Limits Apply
  • Other expenses include: Job Search expenses, Safe Deposit Box Rent, Tax Preparation. Limits Apply

This is a partial list of items that may qualify for itemizing your deductions.
Remember if your standard deduction is $12,600 and your itemized deductions are$15,600 you only realize a benefit for the$ 3000 difference. At the 15% tax rate that is $450.00

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