If you are filling out your tax return as an individual, you will need to itemize your deductions if the total of your itemized deductions is greater than the standard deduction available for your filing status. For the 2023 tax year, the standard deduction amounts are:
- $13,850 for single filers
- $27,700 for married couples filing jointly
- $20,800 for heads of household
You might also choose to itemize your deductions if you are eligible for particular tax benefits or if you have significant deductible expenses such as:
- Medical expenses exceeding 7.5% of your Adjusted Gross Income (AGI)
- State and local taxes, including property tax, that exceed the $10,000 cap on salt deductions
- Mortgage interest on your primary residence and possibly a second home
- Charitable donations
- Miscellaneous expenses that exceed 2% of your AGI (subject to certain restrictions)
Ultimately, you should compare the total of your itemized deductions with the standard deduction to determine which option offers a greater tax advantage. If your itemized deductions are higher, you will likely want to itemize; if not, you can take the standard deduction. Always consult with a tax professional or use tax software to help you in your decision.
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