Question 1

Should I itemize deductions or take the standard deduction?

Accepted Answer

You should itemize if your total itemized deductions exceed the standard deduction ($13,850 for single filers in 2024). Common itemized deductions include mortgage interest, property taxes, charitable donations, and medical expenses exceeding 7.5% of AGI.

Question 2

What deductions are available without itemizing?

Accepted Answer

Above-the-line deductions are available regardless of itemizing: student loan interest (up to $2,500), traditional IRA contributions, HSA contributions, self-employment tax deduction, alimony payments, and educator expenses (up to $300).

Question 3

What is the SALT deduction cap?

Accepted Answer

The State and Local Tax (SALT) deduction is capped at $10,000 total. This includes state income taxes, local income taxes, and property taxes combined. This cap applies to both single and married filing jointly statuses.

Question 4

How much medical expenses can I deduct?

Accepted Answer

Medical expenses are only deductible if they exceed 7.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000, you can only deduct medical expenses above $7,500. Qualifying expenses include insurance premiums, doctor visits, prescriptions, and medical equipment.

Question 5

What records should I keep for tax deductions?

Accepted Answer

Keep documentation for all claimed deductions: mortgage interest statements (Form 1098), property tax bills, charitable donation receipts, medical expense records, and receipts for other itemized deductions. The IRS may request proof of deductions during audits.

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