Return To Blog

Should You Take the Standard Deduction or the Itemized Deduction when Filing Your Denver Taxes

February 14, 2018

If you are getting ready to file your taxes, it is good to be aware of the different ways an individual or organization can choose to prepare their taxes. There are two primary ways you can file your Denver taxes, as you can opt for either the standard deduction or choose to go with an itemized deduction. In deciding which way to file, there are a few factors to consider when making your decision, as you can only choose one way to file your taxes.

Standard Deduction

For those filing their taxes for 2018, the standard deduction has gone up to $6,500, up from $6,350 in 2017. For married couples the standard deduction is $13,000, which is up from 2017 when it was $12,700.

If you decide to go with the standard deduction, you will simplify your tax filing process, as you won’t have to add up all expenses that could be tax-deductible, which is what you would do if you were choosing the itemized deduction. Choosing to file with the standard deduction may be the best option for you if you and/or your partner receive a single W2 from your place of employment.

In most cases, the standard deduction will be the best option in this case, as you won’t have enough write offs to make it worth going for the itemized deduction. Obviously, it makes the most sense to go with the filing method that will give you the largest return when filing your Denver taxes.

Itemized Deduction

Choosing to go with an itemized deduction method can be the best option for your if you are self-employed, as you will have plenty of things to write off. If you work for yourself and you know you will be choosing the itemized deduction, it is a good idea to start collecting receipts and documenting your expenses to make tax filing time less of a headache.

You may also benefit from the itemized deduction method if you have large, uninsured medical costs, if you were the victim of a large uninsured theft or casualty, such as a fire or flood. If you made large contributions to charities, had unreimbursed expenses as an employee, or had large miscellaneous expenses, it might make the most sense to choose the itemized filing. As always, it is best to choose the option that will give you more money, so if you think you can write off more things to give you a higher return, choose the itemized option.

If you are need of having your taxes done in the Denver area, there is no better option than going with Bloch, Rothman, and Associates. Specializing in various accounting services such as tax litigation, IRS audits, and tax preparation (to name a few), we are a full service Denver and Aurora accounting firm that offers personal and affordable accounting and tax services for both individuals and businesses. Contact us today and we will be happy to help you receive the highest return possible.