Can You Itemize Your Tax Deductions This Year?

In many cases, Americans can save money on their tax returns by itemizing their deductions, which means listing them each separately instead of taking the standard deduction. It isn't always possible, and sometimes it isn't favorable for a given situation, but you can save significant money if you qualify. Read on to learn about the necessary criteria to decide if you can itemize your tax deductions this year.

Separate Taxes

The first step to determining if you can itemize your tax deductions is to add up all of the other taxes you've paid during the calendar year. Things like state income tax, local income tax, vehicle registration tax and real estate taxes can all count toward the sum total. You should also include the mortgage payments you've made this year and any points that you've paid toward your home, if you own.

Charitable Donations

Next, you'll need to write down a separate list of charitable donations. This counts toward your total deductions and can be the catalyst that tells you whether or not you can itemize. Charitable donations can include anything from tax gifts to vehicles to clothing to canned goods. Just make sure that the donations qualify as charity, and that you can verify the donations through receipts or canceled checks.

Medical Expenses

If you can deduct medical expenses - those not covered by your insurance police - add them up and put them on the list as well. When you multiply your total income by .075, you subtract it from the total sum of your medical expenses to get the resulting deduction if you were to itemize. You can't deduct all of your medical expenses, and this can be slightly confusing, so seek the counsel of a tax professional before making any concrete decisions.

Extraneous Deductions