Expenses That Are Tax Deductible
If you paid for medical care, mortgage interest, taxes, charitable contributions, causality losses, or various allowable business expenses- you can reduce the amount of you'll owe the IRS after you file. Basically, if the total amount of money you've spent in the categories I've listed is more than the standard deductions, you're better off itemizing your deductions to save money.
Standard Deduction for 2010
The IRS's standard deduction amounts are based on your filing status and are adjusted every year. For 2010, the standard deductions are:
- Filing Single: $5,700
- Married Filing Jointly: $11,400
- Head of Household: $8,400
- Married Filing Separately: $5,700
- Qualifying Widow(er) $11,400
Choose the Right one for You
Add up the eligible expenses you've made during 2010, and if what you've spent this year is more than the 2010 standard deduction, consider itemizing your deductions to reap the maximum amount of savings on your taxes that are possible. You can save hundreds or even thousands of dollars by doing this. It can really be worth the effort in the end.