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Money Monday: Should you take the standard deduction?

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Standard Deduction:

  • 70% took it last year 
  • 90% expected to take it this year

What is it? The amount of income AFTER which you pay taxes.

  • Rates doubled for 2018 
  • Single or married & filing separately: $12,000 
  • Married filing jointly: $24,000 
  • $18,000 for heads of household
  • Goes up again in 2019!

Not certain whether to itemize or take the S.D.? Quick math problem: 

Add up mortgage interest, property taxes, state income taxes or sales taxes, and charitable donations. If those exceed the S.D., itemize. If not: use the S.D.

Using TurboTax or another software program you will want to run your taxes both ways to make certain you’re getting the best deal.

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