Does it ever make sense to Itemize for me?

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rec7
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Does it ever make sense to Itemize for me?

Post by rec7 » Tue Mar 13, 2018 6:33 pm

I make 15k a year am single and pay $2200 in property taxes. I give $2000 to my church each year.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

retiredjg
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Re: Does it ever make sense to Itemize for me?

Post by retiredjg » Tue Mar 13, 2018 6:41 pm

The standard deduction for a single person under age 50 is now $12k. Unless you have other things to deduct, it seems you would do better with the standard deduction.

Iliketoridemybike
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Re: Does it ever make sense to Itemize for me?

Post by Iliketoridemybike » Tue Mar 13, 2018 6:42 pm

You need more deductions.

rec7
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Re: Does it ever make sense to Itemize for me?

Post by rec7 » Tue Mar 13, 2018 6:47 pm

So unless I have more than 12k of deductions it makes no sense for me?
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

retiredjg
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Re: Does it ever make sense to Itemize for me?

Post by retiredjg » Tue Mar 13, 2018 6:53 pm

rec7 wrote:
Tue Mar 13, 2018 6:47 pm
So unless I have more than 12k of deductions it makes no sense for me?
As far as I know, if you have less than $12k in deductions, you should take the standard deduction which reduces your taxable income by $12k. I suppose there might be some situation in which that might not be correct, but I don't know what it would be.

rec7
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Re: Does it ever make sense to Itemize for me?

Post by rec7 » Tue Mar 13, 2018 6:56 pm

Thanks everybody. My tax man always asks me for these things every year and I wonder why. I guess it is his standard questions.
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Gill
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Re: Does it ever make sense to Itemize for me?

Post by Gill » Tue Mar 13, 2018 7:29 pm

Don’t forget, the standard deduction for 2017 was $6,350. The reason the preparer asked was because if you had exceeded that amount you could have itemized.
Gill

retiredjg
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Re: Does it ever make sense to Itemize for me?

Post by retiredjg » Tue Mar 13, 2018 7:45 pm

rec7 wrote:
Tue Mar 13, 2018 6:56 pm
Thanks everybody. My tax man always asks me for these things every year and I wonder why. I guess it is his standard questions.
As mentioned, the standard deduction before the recent tax law changes was much lower. Your tax man asks because you might have had more deductions than in previous years and could have benefited from itemizing your deductions.

Now the personal exemption has been eliminated and the standard deduction increased a fair amount. The result of this is that many more people will be using the standard deduction in the future than the past.

You will still be asked the question - it is pretty standard. The answer might be different from one year to the next.

Mike Scott
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Re: Does it ever make sense to Itemize for me?

Post by Mike Scott » Tue Mar 13, 2018 8:27 pm

With 15K income and standard deduction, can you do your own taxes and save the cost of your "tax man"?

Gill
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Re: Does it ever make sense to Itemize for me?

Post by Gill » Tue Mar 13, 2018 8:30 pm

Mike Scott wrote:
Tue Mar 13, 2018 8:27 pm
With 15K income and standard deduction, can you do your own taxes and save the cost of your "tax man"?
Good point, Mike. Should be able to file in ten minutes.
Gill

magicrat
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Re: Does it ever make sense to Itemize for me?

Post by magicrat » Tue Mar 13, 2018 8:58 pm

Gill wrote:
Tue Mar 13, 2018 8:30 pm
Mike Scott wrote:
Tue Mar 13, 2018 8:27 pm
With 15K income and standard deduction, can you do your own taxes and save the cost of your "tax man"?
Good point, Mike. Should be able to file in ten minutes.
Gill
On a postcard I hear

JW-Retired
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Re: Does it ever make sense to Itemize for me?

Post by JW-Retired » Tue Mar 13, 2018 9:20 pm

rec7 wrote:
Tue Mar 13, 2018 6:56 pm
Thanks everybody. My tax man always asks me for these things every year and I wonder why. I guess it is his standard questions.
As several people said, save some money and do your own taxes. I bet you are the only person in this thread that uses a "tax man". :P
JW
Retired at Last

rec7
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Re: Does it ever make sense to Itemize for me?

Post by rec7 » Wed Mar 14, 2018 11:08 am

Good point about doing the taxes myself. How long do you think it would take me with two mutual fund sells, dividends and some credit union interest?
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Glockenspiel
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Re: Does it ever make sense to Itemize for me?

Post by Glockenspiel » Wed Mar 14, 2018 11:15 am

Are the mutual fund sales in a taxable (brokerage) account, or are they in your 401k or Roth IRA? You'll only need to do anything about it if it's in a taxable account. If in a taxable account, you should either go to your online account and find the relevant tax form with the numbers to input into TurboTax, or just call them up and ask. Also, the credit union interest will literally take 5 seconds to put into TurboTax. With $15k in income, completing your taxes by yourself shouldn't take more than 1/2 hour.

rec7
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Re: Does it ever make sense to Itemize for me?

Post by rec7 » Wed Mar 14, 2018 11:20 am

Thanks it is all taxable.
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CAsage
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Re: Does it ever make sense to Itemize for me?

Post by CAsage » Wed Mar 14, 2018 12:19 pm

It won't take you much longer than it does to print it all out, collect the data, and drive to see the tax guy. I would think an hour would be plenty, especially after your first year. With taxable accounts, not all the "free" tax services are available, but you can use the IRS forms directly. Tax software can be had cheaply on sale. Note that all that paperwork that comes at the end of the year from your broker or credit union is clearly labelled with little boxes telling you where to put the numbers in the tax forms. Study the last two years, try and match up the numbers on your completed tax forms with the broker/bank forms - and you are half way there!

All depends on how much your time is worth and whether you feel comfortable with numbers/forms/computers....

I highly recommend DIY.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

Jack FFR1846
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Re: Does it ever make sense to Itemize for me?

Post by Jack FFR1846 » Wed Mar 14, 2018 12:43 pm

Gill wrote:
Tue Mar 13, 2018 8:30 pm
Mike Scott wrote:
Tue Mar 13, 2018 8:27 pm
With 15K income and standard deduction, can you do your own taxes and save the cost of your "tax man"?
Good point, Mike. Should be able to file in ten minutes.
Gill
Plus the state tax forms (there's about 19 pages minimum for my state.....just did my son's with him on turbo tax with $360 in total income).
Bogle: Smart Beta is stupid

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