To itemize or not to itemize, that is the question. Let’s see what the Tax Man has to say:
- Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses, and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing.
The standard deduction amounts are based on your filing status and are subject to inflation adjustments each year. For 2006, they are:
Married Filing Jointly $10,300
Head of Household $7,550
Married Filing Separately $5,150
There are a few exceptions, conditions, etc that the Tax Man explains in his post, so check it out. Also, keep in mind that itemizing is fun. Yes, really. —MEGHANN MARCO
SHOULD YOU ITEMIZE YOUR DEDUCTIONS? [Tax Man]