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Key Realty Blog

Tuesday, April 1, 2014   /   by David Velasquez

Time to do the taxes

Time to do the taxes.  IRS allows taxpayers the option to take the standard deduction or the itemized deduction.  The astute taxpayer will compare to see which one will result in the greatest deduction and the election can be made each year.
The 2013 standard deduction for a married couple filing jointly is $12,200 and $6,100 for a single taxpayer.  It doesn’t require any proof of actual expense and has no requirement for home ownership.
Items that can be included on Schedule A for itemized deductions include: 

Certain taxes paid for state and local income tax, general sales tax, real estate property taxes, personal property taxes or other taxes paid
Qualified home mortgage interest, investment interest or possibly, mortgage insurance premiums
Charitable contributions
Casualty or theft losses
Medical and dental expenses that exceed 7.5% of adjusted gross income if born before 1/2/49 or 10% if born after 1/2/49
Job expenses and other miscellaneous ded. ...