[01/04/2020]

You can either claim the standard deduction or itemize your deductions -- whichever lowers your tax the most.

The standard deduction is a fixed dollar amount that reduces the income you're taxed on. Your standard deduction varies according to your filing status. Your standard deduction increases if you're blind or age 65 or older.

Most of the taxpayer claims the standard deduction. The standard deduction has following simplicity:

• Allows you a deduction even if you have no expenses that qualify for claiming itemized deductions
• Eliminates the need to itemize deductions, like medical expenses and charitable donations
• Let’s you avoid keeping records and receipts of your expenses in case you're audited by the IRS.

Itemized deductions also reduce your taxable income. You might benefit from itemizing your deductions on Form 1040, Schedule A if you:

• Have itemized deductions that total more than the standard deduction you’d receive
• Had large, uninsured medical and dental expenses
• Paid mortgage interest and real estate taxes on your home
• Had large, unreimbursed expenses as an employee
• Had a large, uninsured casualty (fire, flood, wind) or theft losses
• Made large contributions to qualified charities
• Had large, unreimbursed miscellaneous expenses