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Tax Tip of the Week

Itemizing could save you money 

Generally, you are allowed to deduct on your income tax return the greater of your itemized deductions or the standard deduction. Yet each year hundreds of thousands of taxpayers overpay their taxes because they claim the standard deduction when itemizing would save them money.

Compare methods. Every taxpayer should compare the standard deduction to his or her actual deductible items (such as medical expenses, mortgage and investment interest, property and state income taxes, casualty losses, and job-related expenses). The comparison should be made each tax year. The fact that you didn't itemize in a prior year does not keep you from doing so on this year's tax return if you qualify.

Basically, the standard deduction amount is determined by your filing status. If you're 65 or older, blind, or can be claimed as a dependent by another taxpayer, you have a different standard deduction. For 2007, the standard deduction amounts are:
 

Single or Married Filing Separately $ 5,350
Married filing jointly or Qualifying widow(er) with dependent child 10,700
Head of household 7,850 

If a married couple files separate returns and one spouse itemizes deductions, the other spouse must also itemize. Or they can each take the standard deduction of $5,350.

For assistance in identifying all the deductions to which you are entitled, contact our office. We are here to help you pay the lowest tax allowed under the law. Please call us at (703) 370-0019 or email at kahncpa@kahncpa.com. We are here to help. 

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PREVIOUS TAX TIPS
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  • CONSIDER YOUR TAX FILING STATUS WHEN PLANNING FOR DIVORCE
  • MAKE SURE YOU USE CORRECT SOCIAL SECURITY NUMBERS
  • CHECK THE YEAR-END INFORMATION FORMS YOU RECEIVE 
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  • PROTECT YOURSELF WITH A TAX EXTENSION 
  • ITEMIZING COULD SAVE YOU MONEY 
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  • PAY ATTENTION TO THE "NANNY TAX"
  • GET A TAX CREDIT FOR CHILD CARE EXPENSES
  • CONTACT US
    Kahn, CPA PLLC
    3343 Duke Street
    Alexandria, VA 22314
    703.370.0019
    Fax: 703.997.4433
    Information@KahnCPA.com