Itemized or Standard Deduction?

The IRS statistics show that most taxpayers use the standard deduction. However, you may be able to reduce your tax bill if you itemize on Schedule A. What expenses are deductible on Schedule A? I think most people are familiar with the typical itemized deductions, which requires a Schedule A to be filed. Home mortgage[…]

Married Filing Joint vs. Married Filing Separately

I’ve always believed married filing separately was never desirable because the tax rates are higher and many tax benefits are not available to those who file separately. However, today when I was working with a client going through a divorce, we compared the two filing statuses and discovered that married filing separately only increased the[…]

Filing Status: Married Filing Separately

Married individuals may choose to file separately rather than filing one joint return.  Married filing separately is the least favorable filing status. The standard deduction for this status in 2013 is $6,100 and $6,200 in 2014. Not only does the married filing separately status have the least favorable tax rates, but certain tax benefits like[…]

Filing Status: Head of Household and Single

Head of Household Tax rates for head of household filing status are not as good as married filing jointly but better than single. The standard deduction available for head of household in 2013 is $8,950 and in 2014 is $9,100. Of course, if you can itemize your deductions, you are entitled to the higher of[…]