TAX TIPS
Tax tips are not a substitute for legal, accounting, tax, investment, or other professional advice. Always consult with your trusted CPA before acting upon any tax tips.
When you file your tax return, you usually have a choice whether to itemize deductions or take the standard deduction. Before you choose, it’s a good idea to figure your deductions using both methods. Then choose the one that allows you to pay the lower amount of tax. The one that results in the higher deduction amount often gives you the most benefit.
These six tips will help you choose. 1. Figure your itemized deductions. Add up deductible expenses you paid during the year. These may include expenses such as:
2. Know your standard deduction. If you don’t itemize, your basic standard deduction for 2013 depends on your filing status:
3. Check the exceptions. Some people don’t qualify for the standard deduction and therefore should itemize. This includes married couples who file separate returns and one spouse itemizes. 4. Use the IRS’s ITA tool. Visit IRS.gov and use the Interactive Tax Assistant tool to help determine your standard deduction. 5. File the right forms. To itemize your deductions, use Form 1040 and Schedule A, Itemized Deductions. You can take the standard deduction on Forms 1040, 1040A or 1040EZ. 6. File Electronically. You may file electronically through a paid preparer. For more information regarding tax tips contact your trusted CPA or www.IRS.gov.
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