900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 · 215.563.0276 · Fax: 856.667.3652

Tax Tip of the Week
For the week of
March 25, 2002

Itemizing could save you money

Generally, you are allowed to deduct on your income tax return the greater of your itemized deductions or the standard deduction. Yet each year hundreds of thousands of taxpayers overpay their taxes because they claim the standard deduction when itemizing would save them money.

Compare methods. Every taxpayer should compare the standard deduction to his or her actual deductible items (such as medical expenses, mortgage and investment interest, property and state income taxes, casualty losses, and job-related expenses). The comparison should be made each tax year. The fact that you didn't itemize in a prior year does not keep you from doing so on this year's tax return if you qualify.

Basically, the standard deduction amount is determined by your filing status. If you're 65 or older, blind, or can be claimed as a dependent by another taxpayer, you have a different standard deduction. For 2001, the standard deduction amounts are:
  Single

$ 4,550

  Married filing jointly

7,600

  Head of household

6,650

  Married filing separately

3,800

  Additional for elderly or blind (if married)

900

  Additional for elderly or blind (if single)

1,100

If you are the dependent of another taxpayer (i.e., a child claimed on a parent's return), your standard deduction is the greater of 1) $750, or 2) $250 plus earned income, not to exceed the regular standard deduction.

If a married couple files separate returns and one spouse itemizes deductions, the other spouse must also itemize. Or they can each take the standard deduction of $3,800.

For assistance in identifying all the deductions to which you are entitled, contact our office. We are here to help you pay the lowest tax allowed under the law.


Prior Tax TipsClick here to view previous tax tips.

"Tax Tips" are published weekly to provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders, and current tax information.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax-cutting information from time to time, please contact our office. We're here to help.

Home

 
  untitled

This site designed and maintained by the Information Technology experts at Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co.

We appreciate comments concerning our website. Contact our webmaster .