Federal Incomes Taxes- standard or itemized deductions

[GON]

Just finished 2024 taxes. TurboTax is awesome, although I don't like all non-stop marketing in a trickery manner TurboTax uses to get you to give them information or buy an additional service.

What deduction selection do you chose on your taxes? I go with standard deduction, seems fairly easy and our taxes are not complicated. Anyone BITOGer with non-complicated taxes select itemized deductions, and if so why?

 

[supton]

Wife does our taxes and usually does both ways, just in case something is to be gained. I think for years now the standard deduction has been sufficient. Not much going on for us, simple lives and all. She prints off the forms and goes from there, no software involved.

She did say last year was about the most complicated that she wanted to do, so it might not be for much longer that she does it. I sold some stock and that complicated things unfortunately--if it wasn't for that I guess it'd have stayed pretty easy. Am hoping this year stays easy (didn't sell any). I think part of that was due to Fidelity, apparently they are cryptic in their statements.

 

[SC Maintenance]

The first couple years after the tax cuts and increased standard deduction in 2016 I think I did it both ways just to see. I think one year I might have saved $100 to itemize. Decided not too - too many possibilities of errors and penalties.

Honestly every year I do my taxes with Tax-Cut software, and just about every year the IRS sends me a statement saying I owe them more, or they owe me more. Honestly I wish they would simply do my taxes for me, tell me what I owe or get, and we could all move along.

 

[Rmay635703]

Legally I can’t itemize, lots of us in that bucket, not that it really matters

 

[eljefino]

Wife & I itemized a couple times just after we bought our house and had lots of mortgage interest. Since the the standard deduction has been far and away better. Bugs me that my tax software still asks me all the stupid questions as if it's being helpful.

 

[dnewton3]

I used TT for many years; always used the standard deduction. As much as I tried, I could never get a better benefit from individual deductions.

 

[jetman]

Standard deduction

 

[cpayne5]

Standard deduction for us, too. We used to itemize when mortgage interest was much higher and before these large standard deductions came about.

 

[cptbarkey]

Itemized until around 2016ish as well when "things" changed, the wife for the past few years has QC's my work with Taxact and its always been so close that TurboTax always wins by a few dollars. I have been doing my parents taxes for about 15 years, also standard deductions. Turbotax has been fine and agree, the prompts are highly annoying and worsen each year. Each year I also look for slickdeals or bank discounts, which also have been narrowing.

 

[Bud]

Standard.

 

[tbm5690]

Charitable giving can be a major trigger for itemizing. With the standard deduction continuing to increase every year it becomes less and less likely that itemizing makes sense.

 

[Leo99]

I used to itemize but the Trump tax changes made the standard deduction a lot larger so that my itemized deductions were less than the standard. I have a CPA do my taxes as they get too complicated for the Turbo Taxes. I had a situation where TT asked me if my stock options were qualified or unqualified. I did not know what that meant and TT and Google were not able to explain it properly. Plus my company made things confusing and I heard from coworkers that their tax preparers made mistakes with this. Checking or unchecking the box in TT was a $30k delta in my taxes owed so the $350 paid to get my taxes done is money well spent.

I got my W2 today and I'm worried that I owe a lot in taxes.

 

[John105]

Standard…

I remember in the early 90’s asking my dad, when will I not do the 1040-EZ?

He said most likely when you own a home and have a mortgage.

Even when I did have a mortgage it barely made sense to itemize, and that was before the current potus’ first term and tax act.

 

[Astro14]

Itemize. Our taxes are complex and we have substantial charitable giving.

 

[John105]

I used to itemize but the Trump tax changes made the standard deduction a lot larger so that my itemized deductions were less than the standard. I have a CPA do my taxes as they get too complicated for the Turbo Taxes. I had a situation where TT asked me if my stock options were qualified or unqualified. I did not know what that meant and TT and Google were not able to explain it properly. Plus my company made things confusing and I heard from coworkers that their tax preparers made mistakes with this. Checking or unchecking the box in TT was a $30k delta in my taxes owed so the $350 paid to get my taxes done is money well spent.

I got my W2 today and I'm worried that I owe a lot in taxes.

Imho one scenario that leads to owing is when one spouse earns a lot and the other not that much but enough to throw things off, or even part time.

 

[opus1]

Standard because the SALT provision limits how much I can deduct if I itemize.

 

[Leo99]

Imho one scenario that leads to owing is when one spouse earns a lot and the other not that much but enough to throw things off, or even part time.

Due to some stock options, I made 6x my wife in 2024.

 

[rszappa1]

Just finished 2024 taxes. TurboTax is awesome, although I don't like all non-stop marketing in a trickery manner TurboTax uses to get you to give them information or buy an additional service.

What deduction selection do you chose on your taxes? I go with standard deduction, seems fairly easy and our taxes are not complicated. Anyone BITOGer with non-complicated taxes select itemized deductions, and if so why?

As a senior I go with the standard deduction. I dont even come close to not going with it...I too like Turbo Tax. Have been usuing them for years...never had any issues with them....

 

[Sam_Julier]

We itemize. I tried TT for a few years but our taxes were always higher than with the accountant.

 

[TiGeo]

Tough to beat the standard now after Trump increased the standard deduction. You'd have to have a huge mortgage early in the amortization schedule to make it make sense for most folks. Self-employed and using TT forever/I'm my own accountant.