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Identical results on Standard vs. Itemized. Which to choose?

Forum|Forum|5 years ago
February 23, 2021
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I typically get a better result when I itemize, but this tax season they are identical within couple of $. So the question is, are there reasons (now or for next year's benefit) that I should use the Standard deduction vs. Itemized? MFJ, we’ll be paying about $350 to CA state, and receiving about $1K from the Fed. My thinking is to go with Standard deduction to reduce audit chance. This may be more complex to simply post here but your thoughts and comments are appreciated to trigger something I may not have considered. TIA

Best answer by JohnB5677

This is a personal opinion, and neither answer is wrong. if you have excellent documentation as you've said,

I would choose the Itemized deductions. Only because you will have a history that will carry forward, and it's always a reminder of the various deductions you can take.

On the other hand, if the Standard deduction is greater. Go for the tax break.

CatinaT1

It's getting harder and harder to itemize because the standard deduction has gotten so high. Here is an IRS link that gives good information: Itemized vs Standard Deductions

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B

BK2000Author

Thank you @ CatinaT1

I am aware of the differences and the increase in Std deduction and agree with your comment. I have already prepared two returns: Standard and Itemized, and the end results are the same. I have every detailed backup document for my itemized items. I have already put in the effort and the work is done already. So the question is what would a forward thinking expert/planner do in my situation and most important why. Cheers.

JohnB5677Answer

This is a personal opinion, and neither answer is wrong. if you have excellent documentation as you've said,

I would choose the Itemized deductions. Only because you will have a history that will carry forward, and it's always a reminder of the various deductions you can take.

On the other hand, if the Standard deduction is greater. Go for the tax break.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"