Last week the RDTC Tax Help Blog posted a new entry in its Deduction of the Week series. The new article explains the standard deduction, and how to determine if you should itemize or not. I have included a section of the Deduction of the Week entry below, but you can find the full text at the RDTC Tax Help Blog.
To Itemize or Not?
If you itemize deductions on your tax return, you will be eligible to claim dozens of tax deductions, such as the mortgage interest deduction or vehicle registration fee deduction. However, if you do not qualify for many deductions, you can claim the standard deduction, which will reduce your adjusted gross income by a flat amount.
To decide if you should itemize or not, you should first determine all the deductions you qualify for and the total amounts of those deductions. If that number is higher than the standard deduction you would qualify for then you should itemize. If the number is lower, then you should claim the standard deduction.
Standard Deduction Amounts
Listed below are the standard deduction amounts for 2010:
- Single $5,700
- Married Filing Jointly $11,400
- Married Filing Separately $5,700
- Head of Household $8,400