Some taxpayers must itemize their deductions and some should itemize because they will save money.
You Must Itemize Deductions If:
- You can be claimed as a dependent on your parents return and had unearned income of $1,000 or more. This means that you must complete and attach schedule A. There are two exceptions to this rule.
Exception 1: You don’t have to itemize deductions if you had earned income of $2,300 or more if single, $1,700 or more if married filing a separate return.
Exception 2: You don’t have to use schedule A if you know that your earned income is more than your itemized deductions.
Note: If you’re unearned income is_ less than $1,000 you don’t have to use Schedule A.
- You are married, filing a separate return and your spouse itemizes deductions.
- You file form 4563 and exclude income from the sources in US possessions. (See Publication 570).
You Choose to Itemize: You may choose to itemize your deductions if you are: Married, filing a separate return and have itemized deductions of more than $1,700. Had itemized deductions of $3,400 and you are married and file a joint return.
Single or head of household and your itemized deductions are more than $2,300.
If you itemize complete and attach Schedule A.
You do not itemize. If your itemized deductions are less than the amount shown above for your filing status.
Article extracted from this publication >> March 29, 1985