Itemized Deduction vs. Standard Deduction, Explained.
Video Overview & Insights
"Itemized Deduction vs. Standard Deduction... What is that?!?"
Been filing standard my whole life , UV owned my home for 4 years and I pay 28k in interest glad I found this video
Hey Taxpayers, Tiffany Gonzalez is back with another great installment of "What is that?!?" Where we bring you financial terms and topics and make them easy for you to understand.
Today we are talking about Tax Deductions, the Itemized Deduction and the Standard Deduction. We will bring you what a deduction is, how it works, and the differences between these two options. The wrong choice could lead to higher taxes!
What is the financial incentive for people without big houses to donate to charity?
Summary
📊 Tax Deductions Simplified: Reduces taxable income, lowering overall taxes paid.
Thanks
🔢 Standard Deduction: A set amount ($12,400 for single filers; $24,800 for married filing jointly) that reduces taxable income.
🏡 Itemized Deductions: Include medical expenses, property taxes, mortgage interest, and charitable contributions. You cannot claim both standard and itemized deductions in the same year.
Wait now I feels stupid. I pay property taxes and I have mortgage intrest but I usually always file standard with Turbo Tax. Does that mean I've been potentially missing out on money?
🧮 Which to Choose? Choose the deduction (itemized vs. standard) that provides the highest reduction in taxable income.
✅ Flexibility: You can alternate between standard and itemized deductions each year depending on which provides greater tax savings.
Amazing and easy to understand..great work..thank you
Insights Based on Numbers
The standard deduction for a single filer is $12,400, and married couples can claim $24,800. However, if itemized deductions (such as mortgage interest or property taxes) exceed these amounts, taxpayers can choose the itemized deduction.
great explanation, thank u <3
So tune in and let's get your financial IQ. up!
If you would like us to file your taxes this year, contact us!
You definitely dumbed it down for me 😅 thank you 🙏
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0:45 just to skip to what we're here for
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Is there a maximum deduction limit when it comes to itemized deductions for rental property?
the deductions can add up with maintenance and repairs..
Disclaimers & Disclosure:
This content is for education and entertainment purposes only. Tiffany Gonzalez CPA and Accounting to Scale are not providing Tax or Investment advice. The information is being presented without consideration of the financial circumstances of the taxpayer/investor, financial objectives or risk tolerance and may not be suitable for all taxpayers/investors. We don't make any guarantees or promises as to results that may be obtained using our content. All investing involves risk, including risk of losing investment principal.
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omg you are freaking awesome! thanks for getting to the point!
#TaxTips
#ItemizedDeduction
Extremely helpful 🫶🏾🙏🏾
#StandardDeduction
#CPATips
The way you explain things is the easiest for me to understand! I will definitley subscribe!
#TaxSavings
#FinancialAdvice
Is also this good for transportation independent contractor use itemized or per milage ?
#TaxDeduction
#PersonalFinance
This applies to my 1099-K?
#TaxSeason
#IRS
watched 2-3 videos before finding this one and THIS explained it so well! you have a new subscriber!
#HomeownersTax
#TaxPlanning
What state are you guys located in Tiffany?
#MoneyMatters
#SelfEmployed
I found you by searching standard deduction and now I am subscribed and turned on notifications ❤
#MortgageInterestDeduction
Wait so for itemizing, does that mean I have to save every receipt for everything I buy groceries/gas/car service/etc and then manually enter in every single receipt for the year?
More User Perspectives
If you could do this video with a visual example that would be great?
@cilva7ableSimply explained both the concepts on point without consuming much time.. thank you❤❤
@sam__asjThis video helped me so much. I just scored some extra points on my math assignment. <3
@LissaMIAfitThank you for the explanation
@thafeline6671Hey "What is that" best part
@TarbashNakkahNice
@gabu8065Thank you!
@SleepyKittenzMost helpful!!!❤🎉❤🎉
@aliyahthegardenistbrain blast how simple this has been but never explained well lol thank you
@NewsforThought-English@Accounting to Scale Thanks so much for your video. I am a food delivery driver that has racked up several hundred miles for deliveries. My question is can I do a mileage deduction, which is about .65 cents per mile for 2023, AND take a standard deduction as well, which is about $13000 for 2023? I always thought that taking a mileage deduction means I would have to file as an itemized form as opposed to the standard deduction.
@majesty10xu15Hello, are HSA contributions tax deductible?
@UliSwagI’m in my 20s and I had no idea what a tax deduction was. Now I know. Thanks!
@erickarodriguez93What other expenses/ assets can i deduct/claim off my car even if i take standard deduction as a gig worker?
@jaimeramirez-zt9ddWould the fee for federal income tax return self preperation be able to be written off as administrative expense under legal and professional service if you are independent contractor or would it be labeled a different and would it be for previous return or the one currently filing?
@jaimeramirez-zt9ddUm what if you are a independent contractor/ gig worker and have to take the first year standard deduction or it wont let you change back to itemizing on car expense.
@jaimeramirez-zt9ddIf you purchase a mobile home and are paying it in payments, is it treated the same as a house? Will I be able to use those interest payments and the insurance premiums as an itemized deduction?
@CpT_PrInCeSsThank you for the clear straightforward explanation!!!!!!
@CpT_PrInCeSsThis is by far the BEST explanation of the standard deduction on the internet. Hands down!
@terence44275/6 years ago I did about 55 returns for people, probably 10 were for peoples high school and college age kids, out of the other 45 … 43 itemized and it was worth it
The year the law changed it was down too two. Someone who had a 375000 mortgage, and an older wealthy lady who donates 25000 and had real estate taxes
I got out of the business shortly after that because I told most of them they could do it themselves. Still do the wealthy lady
I can’t get it why does standart deduction doesn’t apply on my tax return when i file as self employed it says I’m eligible for the deduction but when it comes to federal tax it doesn’t reduce my income
@ARTURTRAVEL1Thank you for the great information 🙏👍
@DobbyWobbinsClearly explained, thank you.
@McFarlandMoneyThank you. You really helped me.
@genxjaws1191Such a worthless vid.what an airhead.
@KR1510zLoved your video, and how you explain things
@LauraNunez-bo5evThanks for the clear explanation and fantastic examples!
@ShiceTeaI dont pay a mortgage but i pay rent. Can i use that for itemized?
@abs5809Something to note is that
you can only take What (exceeds) 7.5% of your AGI for Medical and Dental Expenses
If your AGI was 50k
7.5% of that is $3750
If your medical expenses were 3000 and dental 500 that is only $3500 so you can not take anything for neither medical nor dental but if let say your
medical and dental added to 10k for some reason then you can take (10k - 3750) === 6250
The above is true only if you are not doing standard deduction
I collect rent from a condo I own. What deductions can I take? Thank you.
@michaelcrow2956https://youtu.be/2LmBSfomk2Q?t=113 I thought the $12400 standard deduction lowered your overall taxable income from the top. So the 12,400 applies to the bottom of your bracket? I didnt know that. Is that the case?
@Rdn55