GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you could read more about oureditorial guidelinesand our products and servicesreview methodology.
But which one is better to maximize savings?
As the April 15 tax deadline approaches, heres what you oughta know aboutclaiming deductions on your tax return.
Standard Deduction
The standard deduction is a flat-dollar reduction to your adjusted gross income (AGI).
In 2017, the Tax Cuts and Jobs Act (TCJA) substantially increased the standard deduction.
As a result, this increased the number of taxpayers who claimed the standard deduction.
Taxpayers often choose to itemize deductions if their allowable itemized deductions total is more than their standard deduction.
This amount is then subtracted from your income.
Some benefits of claiming itemized deductions include:
Which One Should Homeowners Choose?
After that date, the amount was reduced to $750,000.
For example, say you purchased a home in late 2023.
The loan amount is $600,000 with a 6.5% rate on a 30-year fixed-rate mortgage.
Your monthly mortgage payment is about $3,792, with much of that going toward interest.
Your estimated interest paid in 2024 could be as much as $38,800 much greater than the standard deduction.
Property taxes of up to $10,000 also qualify as an itemized deduction.
More From GOBankingRates
Share This Article:
