Deductions reduce the income your tax is based on. The question is usually whether the standard deduction or itemizing serves you better.
Standard versus itemized
The standard deduction is a fixed amount based on filing status. Itemizing adds up specific deductible expenses instead. You generally use whichever is larger.
Common itemized categories
Mortgage interest, certain taxes paid, qualifying medical expenses above a threshold and charitable contributions are the categories most taxpayers encounter.
Business and self-employed expenses
Self-employed taxpayers deduct ordinary and necessary business expenses separately from the standard deduction. Records — receipts, mileage logs, statements — are what support them.
Key takeaways
- You generally take the larger of standard or itemized.
- Business expenses are separate from the standard deduction.
- Records are the deduction; the receipt is not optional.
- Personal and business expenses should stay separated all year.
Frequently asked questions
Only if your itemized total exceeds your standard deduction. We compare both when preparing your return.
Possibly, if the space and use meet specific requirements. We review the details with you.
This page provides general information only. Individual tax situations vary and may require additional documents or steps.