How to choose between standard deduction and itemized deduction

You need to understand the basic difference between standard deduction and itemized deduction first. The standard deduction reduces your monthly income by a certain amount. The itemized deduction consists of a list of eligible expenses. You can claim deduction for items that reduce your tax bill significantly.

The standard deduction is a flat amount that you can deduct from the taxable income. The amount of deduction will be based on the year, filing status, and number of dependents. But the itemized deduction may enable you to deduct the actual dollar amount of different itemized expenses, such as property taxes, mortgage interest, student loan interest etc. So, You’ll likely want to select the option that reduces your taxable income the most.

If you are a newbie in tax, then it is better to hire an expert regarding the tax return file. This is a bit complex subject.