Generally, you must decide whether to itemize deductions or to use the standard deduction. You should itemize deductions if your allowable itemized deductions are more than your standard deduction.
Some taxpayers must itemize deductions because they do not qualify for the standard deduction. Those taxpayers not eligible to use the standard deduction include nonresident aliens, dual status aliens, and individuals who file returns for periods of less than 12 months. When a married couple files separate returns and one spouse itemizes deductions, the other spouse must also itemize deductions.
To determine if it is better to use standard or itemized deductions, you first have to know the number to beat,or the standard deduction. The standard deduction is determined by your filing status, age, and whether you are blind. The number to beat for 2005 is set down below by your filing status.
Single is $5,000 standard deduction (plus $1250 for blindness or over age 65)
Married Filing Jointly is $10,000 standard deduction (plus $1000 for blindness or over the age 65)
Married Filing Separately is $5,000 standard deduction (plus $1000 for blindness or over the age 65)
Head of Household is $7,300 standard deduction (plus $1250 for blindness or over the age 65) , and
Widow(er) with dependent child is $10,000 standard deduction (plus $1000 for blindness or over the age 65)
Below are listed the categories of itemized deductions. While there are monetary hurdles for some itemized deductions (such as medical and employee business deductions), first, add up the amount you spent in each itemized deduction category, then total the amount. If the amount of your itemized deductions are more than your standard deduction, then claim the itemized deductions. If the amount of your itemized deductions are less than your standard deduction, then claim the standard deduction. If you claim the standard deduction, you can efile 1040ez, 1040a, or 1040. If you claim itemized deductions, you must use Form 1040.
If you feel that itemizing your deductions would be beneficial, please refer to the sectionItemized Deductions Explained
The itemized deductions explained section contains information not only what is meant by the category but also a listing of deductible expenses you should claim if you incurred the expense.
