Tax Day: Take the Standard Deduction or Itemized Deductions?
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Choose Your Option Wisely
It’s that time of the year again when American taxpayers hurry up to beat the deadline for the filing of taxes. Tax Day is set for the 15th of April every year unless the date falls on a weekend or a holiday. In this case, it is scheduled for the first Monday after. For the year 2022, the deadline has been set for April 18th.
Tax Day serves as a reminder for every American to pay their taxes on or before the tax deadline. Failing to meet the deadline could result in interests and penalties from the Internal Revenue Service (IRS).
What You Need to Know Before Filing Your Tax Return
When filing your taxes, you have the choice of taking the standard deduction or itemizing your deductions. The standard deduction is a preset amount that you are allowed to deduct from your taxable income each year. This amount depends on your tax filing status.
The standard deductions were nearly doubled with changes brought about by the Tax Cuts and Jobs Act (TCJA) for 2018. The TCJA, which President Trump signed into law on December 22nd, 2017, brought sweeping changes to the tax code.
For 2021 taxes, the standard deduction is $12,550 for singles ($12,950 for 2020), $18,800 for heads of household ($19,400 for 2022) and $25,100 for married filing jointly taxpayers ($25,900 for 2022).
Itemized deductions help some taxpayers lower their annual income tax bill more than the standard deduction would provide. Itemizing makes more sense for higher-income earners who have several large expenses to deduct.
Before the passage of TCJA, millions of taxpayers were able to claim a larger deduction on their tax returns by itemizing their deductions. However, thanks to the higher standard deductions, this may no longer be necessary.
If you opt to itemize your deductions, you can deduct from your income several categories like medical expenses, mortgage interest, charitable donations, and many other items.
Any donation made to a qualified charity is deductible within certain limitations. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27th, 2020, creates a new deduction of up to $300 for charitable donations and relaxes limits on other charitable deductions to increase charitable giving during the COVID-19 pandemic. These include cash contributions and donations of food. These apply both to individuals and corporations.
If you’re filing as a single taxpayer for the 2021 tax year or you’re married and filing separately, you may be better off taking the standard deduction of $12,550 if your itemized deductions total less than that amount. The same applies to a married couple filing jointly who have no more than $25,100 in itemized deductions and heads of household whose deductions total no more than $18,800.
To find out the best tax option for you, you can hire the services of an experienced and competent tax preparer. They should be able to determine whether you should itemize or take the standard deduction.
Save Lives and Get a Hefty Tax Deduction
One itemized tax deduction that benefits taxpayers is a charitable contribution. If you have an old car that’s just gathering dust in your garage, you can donate it to us at Breast Cancer Car Donations to earn a hefty tax deduction when you file your taxes next year.
We will auction off your donated vehicle and use the proceeds to support the life-saving mission of our breast cancer-focused nonprofit partners. These IRS-certified 501(c)(3) nonprofits use the funding we give to provide uninsured and indigent breast cancer patients with financial assistance to cover the costs of their treatments, doctor consultations, medications, follow-up care, and other health care services. They are also given easy access to top cancer centers for their full treatment.
As a donor, expect to receive the highest tax deduction based on the selling price of your vehicle. We’ll mail you the 100% tax-deductible sales receipt of your car soon after its sale.
You will also benefit from our free pickup and towing service, which is available to all our donors in all parts of the United States. Plus, you can count on our team to handle all the necessary paperwork on your behalf.
Best of all, you’ll have the ultimate pleasure and satisfaction of doing something extraordinary that can help save many lives.
We welcome almost all types of vehicles, including those that are no longer running or those that have defective or missing parts.
For more information on our vehicle donation program, including our quick and easy donation process, head over to our FAQs page. If you have any questions or concerns, feel free to call us anytime through our toll-free hotline at 866-540-5069. You may also write to us here.
Find a New Purpose for Your Old Car Today!
Find a new and meaningful purpose for your old and unwanted car while reducing your taxable income next year. Donate that auto to us and we’ll turn it into a life-saving tool for the needy breast cancer patients in your area. Call Breast Cancer Car Donations at 866-540-5069 or fill out our secure online donation form now!