TurboTax AnswerXchange Question of the Month: Standard vs. Itemized Deductions?

Tax Deductions and Credits TT-Answerxchangeimage

We’re kicking off a brand new series on the blog that is all about you. Or, more specifically, all about your tax questions. Each month, visit the TurboTax Blog to learn about a different trending question from the TurboTax AnswerXchange, our online tax community that provides personal answers to taxpayer questions.

This month’s trending question: Tax Deductions 101. Read below to learn the difference between standard vs. itemized deductions.

Q:  What are the differences between standard deductions and itemized deductions?

A:  This is a question that comes up year after year, and the answer is surprisingly simple! 

A standard deduction is the dollar amount that you can deduct from your income, based on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. The IRS determines the amount, and you can see the standard deductions for 2014 here

Alternatively, itemized deductions allow you to deduct certain expenses from your income such as mortgage interest, donations, medical expenses etc.

So how do you choose between the two?

When all of your itemized deductions exceed the standard deduction, the amount of your income being taxed can be reduced by your itemized deductions, increasing your tax refund (or further lowering the taxes you owe).

Lucky for you, TurboTax leads you step by step, through all of the tax deductions that you may be eligible for and chooses the type of tax deduction that benefits you most, guaranteeing your maximum tax refund.

Discover answers to more trending tax questions or submit your own to the TurboTax AnswerXchange, and get personal answers from TurboTax support experts and customers like you.

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