Anybody taking the IRS standard deduction?

[trof]

Up until this year I kept the receipts, waded through all the forms, itemizing my deductions, which were always substantially more than the standard deduction.

For the past few years I've used TaxAct online. Cheap and relatively easy. Last year after answering all the questions and filling in the blanks, when I finished the screen popped up that read "Your itemized deductions are less that the standard deduction, therefore your deduction is $XXXXX."
Well blow me down.

In retirement, our only 'big ticket' deductions are mortgage interest and real estate taxes.

I did some rough math and found the same holds true this year. The standard deduction is much higher than itemized.
So it took me about 2 hours to do state and federal tax returns online.
Nice.

[Fresh_Start]

1. no, but I live in a high cost real estate state

interest and taxes for real estate are over $70K per year

[Orrex]

2. I take the standard deduction

I've always made out substantially better that way.


Given the message that TaxAct gave you, you might want to revisit your prior years' returns to see if you can re-file with the standard deduction and get more $$ back.

[trof]

15. TaxAct program would have told me which was best.

We had higher deductions, especially with the casualty losses from Ivan.

[Orrex]

17. Doh--sorry!

I misread the OP and didn't realize that you'd been using TaxAct for several years.

[bryant69]

3. I usually take it but I don't own my own house

I suspect that If I did I would.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[ThoughtCriminal]

4. Once the house was paid off

That ended itemizing for us.

[napi21]

5. Our house was paid off 8 years ago. We've been using the Std. Ded.

ever since.

[AirmensMom]

6. Yep.

Ever since we left FL.

[virgdem]

7. Yes, for the past two years..

I've used the standard deduction due to paying off my mortgage in 2003. I have a small second mortgage, but the interest is small, so it doesn't factor in the way it used to. I have used TaxCut since 1993 and think its a great program, as are all the other ones out there. It makes it so much easier to do taxes and cuts down on the time spent, which is a godsend, as I'm self-employed.

[Geoff R. Casavant]

8. We go on a year-by-year basis

I own my own business, so my income tends to fluctuate. With the new deduction for state sales taxes (which, if you don't want to save every receipt, can be estimated based on income), and the fact that we make more charitable contributions in our good years, sometimes we go over and sometimes not.

[conflictgirl]

9. Yes, we did

We own our own home but our mortgage cost is relatively low and the interest (along with our other various itemized deductions) comes out quite a bit below the standard deduction. I always use Turbo Tax so the program tells me that automatically.

[barbtries]

10. i've never itemized deductions

never owned a home, never made much money. my income taxes have historically doubled as my savings account.

[pitohui]

11. almost always take std deduction

there is nothing to deduct the itemized way unless you have a mind boggling mortgage at least at our income level

[Ilsa]

12. Yes, for about the last 5-10 years. And yes, we are paying off a mortgage

on our primary residence. It doesn't make any sense for us to itemize. Even with medical expenses, and you can only deduct those in excess of 7% (or whatever) of your AGI, making it virtually impossible to deduct. So, we have been taking the standard deduction for about five years or longer now.

[Gman]

13. We do the standard deduction

and have several years now for the same reasons you mention.

Where we have done real well overall... and I hate to even admit this... is the Bush tax cuts, plus a couple of other things like education and child care credits.

For the record, I'd very gladly give up any tax cut if it would help makes things better. I didn't want the tax cut and don't really need it.

[trof]

16. Same here about the tax cuts, but I'd give it all back too.

[Contrary1]

14. Wish we could deduct all the money we lent to others

who are/were suffering from this vibrant economy Bush has bestowed upon us. It kept a couple of them off welfare.
But, since we can't, we will take the standard deduction again.

[ThomWV]

18. Have for 25 out of the last 30 years

But our house has been paid for that long.

[Jimbo S]

19. Used standard deduction in 2007

My wife was out of work for five months, so her state withholdings was down. Plus, we've paid down the mortgage so the interest isn't what it used to be.

I paid my 2007 property taxes in January and will pay 2008 property taxes in December, so I can double up on that deduction which will most likely lead to itemized > standard.