Business Tax Recovery Logo


Tax Deduction Consulting: Itemizing Fargo ND

Tax deductions are a very simple part of a theoretically simple tax reporting system. If you've ever prepared your own taxes, you know this simply isn't true. Complicated tax forms can be a nightmare to fill out. Ever helpful, the IRS gives you an option of just taking a standard deduction instead of itemizing your deductions. So, what should you do?

H&R Block
(701) 241-7628
1531 S UNIVERSITY dr
FARGO, ND

Data Provided by:
H&R Block Inside Times Square West
(701) 282-4570
5050 13TH AVE S
FARGO, ND

Data Provided by:
Liberty Tax Service
(866) 871-1040
312 University Dr N
Fargo, ND

Data Provided by:
H&R Block
(701) 746-5963
2551 32ND AVE S
GRAND FORKS, ND

Data Provided by:
Liberty Tax Service
(866) 871-1040
1173 3rd Ave W # 19
Dickinson, ND

Data Provided by:
Accounting 4 Success
(701) 371-0419
3320 Westrac Drive
Fargo, ND
 
Liberty Tax Service
(866) 871-1040
3005 13th Ave S
Fargo, ND

Data Provided by:
Liberty Tax Service
(866) 871-1040
113 Main Ave E
West Fargo, ND

Data Provided by:
Liberty Tax Service
(866) 871-1040
500 W Main St
Mandan, ND

Data Provided by:
H&R Block
(701) 241-7628
1531 S UNIVERSITY dr
FARGO, ND

Data Provided by:
Data Provided by:

Tax Deduction Consulting: Itemizing

Itemize Tax Deductions

When you finally decide it is time to prepare your taxes, the first question is whether you should itemize tax deductions or take the standard deduction provided by the IRS.

Tax deductions are a very simple part of a theoretically simple tax reporting system. If you've ever prepared your own taxes, you know this simply isn't true. Complicated tax forms can be a nightmare to fill out. Ever helpful, the IRS gives you an option of just taking a standard deduction instead of itemizing your deductions. So, what should you do?

The standard deduction is the easiest method because it requires no calculations or supporting documentation of any sort. You figure out your adjusted gross income and simply submit the amount for your classification. The amount differs based on whether you are filing as single, married, older than 65 or have kids.

Many people scoff at the mere idea of taking the standard deduction. As with all tax issues, deciding whether to take the standard deduction isn't so easy. If you have a fairly simple financial life and don't have many deductions, the standard deduction is almost always the best choice. For instance, if you make $45,000 as an employee of a company, rent a residence and don't have any major medical bills or losses, the standard deduction is probably going to save you more money than itemizing. Unfortunately, you can never be sure until you take a stab at itemizing your deductions in a rough draft of a tax return.

Itemizing your deductions is exactly what it sounds like. You literally go through your records and categorize every possible deduction. These deductions are then subtracted from your adjusted gross income to get a final figure from which tax is determined using the tax tables. Itemizing is the way to go if you have significant tax deductions or tax credits in your financial life. For instance, you almost always want to itemize if you own a home as mortgage interest can be deducted. Generally, you...

Click here to read the rest of this article from BusinessTaxRecovery.com