Here's part 8 of a 15-point tax checklist from Money Central:
Get itemized. Which is bigger -- your Standard Deduction or the sum of your itemized deductions? We're now "Below the Line." The chart next to line 39 on your 1040 form for 2005 lists your standard deduction. Compare this amount to your total allowable itemized deductions. That's the sum of your allowed medical expenses, taxes, interest, charitable contributions, casualty and theft losses, and miscellaneous itemized expenses. Always do it both ways ... and, subject to the alternative minimum tax (and don't even try to get into that), always take the higher amount.
For more tax-related post from Free Money Finance, see these links:
- Six Don't-Miss Tax Breaks
- Need Help this Tax Season?
- Eight Ways to Avoid an Audit
- Tax Law Changes You'll Need to Consider for 2005 Income Tax Returns
- Top 10 New Year Tax Resolutions
- The Fastest Tax Refund Possible
- 3 Keys to Choosing the Best Tax Pro
- Five Common Tax Filing Mistakes
- Why I Use a CPA to Do My Taxes
- Tax Savvy Ways to Save for an Education
- The Basics of Tax Record Keeping: What Should You Keep?
- As Audits Increase, Taxpayers Should Seek Professional Assistance to Avoid Trouble with the IRS
FMF recommends: H&R Block. Do it yourself or have us do it. It's never been easier.
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