Money Monday: Should you take the standard deduction?

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.

Helpful links: 

• http://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/a-reference-list-of-tax-changes-for-2018
• http://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/2018-year-end-financial-planning
• https://www.fool.com/taxes/2018/09/16/5-tax-tips-for-2018-and-beyond.aspx