"Itemized Deduction vs. Standard Deduction... What is that?!?"

Hey Taxpayers, Tiffany Gonzalez is back with another great installment of "What is that?!?" Where we bring you financial terms and topics and make them easy for you to understand.

Today we are talking about Tax Deductions, the Itemized Deduction and the Standard Deduction. We will bring you what a deduction is, how it works, and the differences between these two options. The wrong choice could lead to higher taxes!


Summary
📊 Tax Deductions Simplified: Reduces taxable income, lowering overall taxes paid.
🔢 Standard Deduction: A set amount ($12,400 for single filers; $24,800 for married filing jointly) that reduces taxable income.
🏡 Itemized Deductions: Include medical expenses, property taxes, mortgage interest, and charitable contributions. You cannot claim both standard and itemized deductions in the same year.
🧮 Which to Choose? Choose the deduction (itemized vs. standard) that provides the highest reduction in taxable income.
✅ Flexibility: You can alternate between standard and itemized deductions each year depending on which provides greater tax savings.
Insights Based on Numbers
The standard deduction for a single filer is $12,400, and married couples can claim $24,800. However, if itemized deductions (such as mortgage interest or property taxes) exceed these amounts, taxpayers can choose the itemized deduction.


So tune in and let's get your financial IQ. up!

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Disclaimers & Disclosure:
This content is for education and entertainment purposes only. Tiffany Gonzalez CPA and Accounting to Scale are not providing Tax or Investment advice. The information is being presented without consideration of the financial circumstances of the taxpayer/investor, financial objectives or risk tolerance and may not be suitable for all taxpayers/investors. We don't make any guarantees or promises as to results that may be obtained using our content. All investing involves risk, including risk of losing investment principal.

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