Ask Terry Questions maximum deduction amount

maximum deduction amount

By Terry Savage on December 23, 2019 | Taxes & Economy

Is $10,000 the maximum deduction allowed for the total of real estate taxes and charitable contributions? Is the standard deduction more than $10,000? If so, is that why it’s better to take the standard deduction rather than itemize?

Terry Says

It’s easy to get things confused. For 2019, the standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses. If you have deductions above that amount (which could include charitable contributions, as well as mortgage interest, and state and local property and income taxes, and perhaps even some medical expenses or deductions for student loan interest), you might want to itemize. BUT — and this is a BIG BUT — the maximum amount of state and local income taxes you can deduct is $10,000. That limitation might make it easier to just take the standard deduction –unless you have a lot of other deductions.
See your tax preparer or use a program like TurboTax to work through your potential deductions before making this decision about how to file.

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