What’s the Difference Between Standard Deduction and Itemized Deduction?

During tax season, one of the biggest decisions is choosing between the standard deduction and the itemized deduction. Both options help lower taxable income, but the best choice depends on your financial situation.

Standard Deduction

The standard deduction is a fixed amount set by the IRS that reduces taxable income without requiring documentation. It’s ideal for those without significant deductible expenses.

Benefits of the Standard Deduction:
✅ Simple to apply—no extra documentation required.
✅ Reduces the risk of mistakes and audits.
✅ Saves time when filing your taxes.

Itemized Deduction

Itemized deductions allow taxpayers to deduct specific eligible expenses, such as:
✔️ Mortgage interest
✔️ Medical expenses
✔️ Charitable donations
✔️ State and local taxes
✔️ Disaster losses

Benefits of Itemized Deduction:
✅ Can result in a larger tax reduction if deductible expenses exceed the standard deduction.
✅ Allows taxpayers to customize deductions based on their actual expenses.

Which One Should You Choose?

If your total deductible expenses exceed the standard deduction, itemizing might be more beneficial. Otherwise, the standard deduction is the best choice.

📌 Tip: Consult a tax professional to determine which option maximizes your refund and minimizes your tax liability.

📞 At Viera Services, we help you choose the best strategy to lower your tax burden and optimize your tax return. Contact us today for personalized assistance.

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📍 Cornelia: +1 706-778-6478