Standard vs itemized

[isis297]

What is the name of your state? What is the name of your state? NY

Are there situations under which you can't file an itemized return?

My preparer has been doing standard for a few years now and we've teetered on owing. I was looking at how much we've paid in interest and property taxes and wondered why she hasn't been itemizing for us. Before I ask her, I figured I would do my own research to see if we aren't allowed to for some reason, but my initial searches aren't showing me anything that says it can't be used under certain circumstances.

Could you please advise? Thank you.

 

[adjusterjack]

Form 1040 2024 Instruction booklet:

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf?os=wtmbzegmu5hwrefapp&ref=app

See Page 31 for an explanation of the choice between itemization or the standard deduction.

 

[Mark_A]

What is the name of your state? What is the name of your state? NY

Are there situations under which you can't file an itemized return?

My preparer has been doing standard for a few years now and we've teetered on owing. I was looking at how much we've paid in interest and property taxes and wondered why she hasn't been itemizing for us. Before I ask her, I figured I would do my own research to see if we aren't allowed to for some reason, but my initial searches aren't showing me anything that says it can't be used under certain circumstances.

Could you please advise? Thank you.

Most people, including paid tax preparers, use tax software to do a return. One can simply fill in the deductions, all the things like income, etc, that may affect whether one can itemize, and the software will automatically figure out whether you can itemize, and whether it will be most beneficial to itemize or to take the standard deduction, if both options are permissible.

Some paid preparers may not want you to know that they are using tax software, or they may not want to take the extra time to enter in all the deductions (and let the software decide) unless they charge you more for doing the tax return.

 

[Mark_A]

I found this information:

Taxpayers who must itemize deductions include:

• A married individual filing as married filing separately whose spouse itemizes deductions.
• An individual who was a nonresident alien or dual status alien during the year (some exceptions apply).
• An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period.

https://www.irs.gov/newsroom/deduct...ence-between-standard-and-itemized-deductions

 

[isis297]

I found this information:

Taxpayers who must itemize deductions include:

• A married individual filing as married filing separately whose spouse itemizes deductions.
• An individual who was a nonresident alien or dual status alien during the year (some exceptions apply).
• An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period.

https://www.irs.gov/newsroom/deduct...ence-between-standard-and-itemized-deductions

Can you if you don't have those things?

 

[isis297]

Just found out I would need to be able to deduct a minimum of 29k.

 

[Mark_A]

Just found out I would need to be able to deduct a minimum of 29k.

For a married couple filing jointly, the standard deduction goes up to $30K in 2025. For single taxpayers, the standard deduction in 2025 will be $15K. Amounts are slightly higher for those over 65 and/or blind and/or Head of a Household (per IRS definition).

However, there are limits to some of the deductions:

• Medial and dental expenses are only deductible to the extent they exceed 7.5% of AGI (Adjusted Gross Income)
• State and Local taxes can only be deducted up to $10,000 max

One can actually itemize deductions even if the standard deduction is higher than the itemized deductions, but not sure why one would do that. But there must be some reason or it wouldn't be allowed. You have to check a specific box to do that.

 

[LdiJ]

What is the name of your state? What is the name of your state? NY

Are there situations under which you can't file an itemized return?

My preparer has been doing standard for a few years now and we've teetered on owing. I was looking at how much we've paid in interest and property taxes and wondered why she hasn't been itemizing for us. Before I ask her, I figured I would do my own research to see if we aren't allowed to for some reason, but my initial searches aren't showing me anything that says it can't be used under certain circumstances.

Could you please advise? Thank you.

Everybody gets a standard deduction. The standard deduction this year for a married couple under 65 is $29,200 and for a single person is $14,600. IF itemizing deductions would give you a greater deduction than your standard deduction, you may itemize. However, some itemized deductions have various floors and limitations. For example, medical expenses are only deductible in the amount that exceeds 10% of your Adjusted Gross Income. State and local taxes (including property taxes) are limited to a maximum of $10,000, charitable donations to 50% of your adjusted gross income and many of the miscellaneous itemized deductions were eliminated under the tax changes in Trump's first term.

Therefore, a tax professional is not going to itemize your deductions unless that produces a better result than you taking your standard deduction. With the standard deductions being as high as they are these days, not many people benefit from itemizing anymore. You can always itemize if you want to, even if it produces a poorer result, but most people aren't looking for a poorer result.

 

[LdiJ]

Most people, including paid tax preparers, use tax software to do a return. One can simply fill in the deductions, all the things like income, etc, that may affect whether one can itemize, and the software will automatically figure out whether you can itemize, and whether it will be most beneficial to itemize or to take the standard deduction, if both options are permissible.

Some paid preparers may not want you to know that they are using tax software, or they may not want to take the extra time to enter in all the deductions (and let the software decide) unless they charge you more for doing the tax return.

Mark,

No tax professional would want someone to NOT know that they were using tax software. It would be absurd to do tax returns by hand. It would be way too easy to make math errors. Professional software of course is very different than what you find online. In addition, the few seconds it would take a tax professional to input potential itemized deductions is not an incentive to avoid doing so. At the same time, nearly all tax professionals can tell just by looking at someone's potential deductions whether or not there is a chance they could be higher than the standard deduction.

 

[not2cleverRed]

Just found out I would need to be able to deduct a minimum of 29k.

That's probably why your tax preparer has been having you use the standard deduction.

 

[Mark_A]

Mark,

No tax professional would want someone to NOT know that they were using tax software. It would be absurd to do tax returns by hand. It would be way too easy to make math errors. Professional software of course is very different than what you find online. In addition, the few seconds it would take a tax professional to input potential itemized deductions is not an incentive to avoid doing so. At the same time, nearly all tax professionals can tell just by looking at someone's potential deductions whether or not there is a chance they could be higher than the standard deduction.

Just so you know, I am a retired CPA. I never suggested that a professional tax preparer would do a return by hand. Also, not all tax professionals are CPA's or even all that "professional." But I cannot understand why someone who uses the standard deduction would pay someone to do their tax return unless they didn't have access to a computer, so they must think it is a lot more complicated than it really is. Even if a person did know a tax preparer uses a software program, they might think it is some kind of software that is better than what you can get for $50 or less (or sometimes for free if no capital gains, etc).

You are correct that often times it doesn't take a long time to input all itemized deductions, but if there are health care expenses it could take some time, especially if there were travel/mileage expenses related to doctor visits, etc. Then there are all the Rx drug purchases during the year, often multiple types of insurance payments (like Medicare Part B, Medicare Supplemental, Medicare Part D drug plan, etc), plus things like vision and dental expenses. Yes, I know that most people don't exceed 7.5% of AGI for their medical expenses, but when they do, it can take a fair amount of time to gather all that information.

Even if one is just deducting state and local taxes, plus mortgage interest payments, that takes more a few seconds, assuming that the client has actually got all those receipts for you. Then if itemizing, doing the charitable donations, asking about any casualty losses, etc, takes a some amount of time, that all added up could easily double or triple the amount of time one takes to do a tax return.

 

[not2cleverRed]

But I cannot understand why someone who uses the standard deduction would pay someone to do their tax return unless they didn't have access to a computer, so they must think it is a lot more complicated than it really is. Even if a person did know a tax preparer uses a software program, they might think it is some kind of software that is better than what you can get for $50 or less (or sometimes for free if no capital gains, etc).

You may not be able to understand it, but yes, a lot of people are intimidated by all things IRS.

Plus, unless you waste the time doing the calculations, you might not realize that you're coming out ahead using the standard deduction (OP didn't).

 

[Mark_A]

You may not be able to understand it, but yes, a lot of people are intimidated by all things IRS.

Plus, unless you waste the time doing the calculations, you might not realize that you're coming out ahead using the standard deduction (OP didn't).

If you think the IRS is bad, you should try doing a non-resident California state income tax return (needed for an investment in a publicly traded partnership that had income realized from CA, and 10 other states). That was a real nightmare, and at the time I did it, Turbo-Tax did not handle that for California (not sure if they do now).

Your second point is exactly correct, but it takes time to do those calculations, and if a paid tax preparer is going to do that, it could affect the fee being charged. If it was just mortgage interest and state and local taxes, that might not take so long (if the client had all the documentation handed to the preparer), but some of the other stuff can be tedious (like the medical stuff I mentioned above) and easily double the amount of time needed to do the tax return.

 

[davew9128]

Just so you know, I am a retired CPA. I never suggested that a professional tax preparer would do a return by hand. Also, not all tax professionals are CPA's or even all that "professional." But I cannot understand why someone who uses the standard deduction would pay someone to do their tax return unless they didn't have access to a computer, so they must think it is a lot more complicated than it really is. Even if a person did know a tax preparer uses a software program, they might think it is some kind of software that is better than what you can get for $50 or less (or sometimes for free if no capital gains, etc).

You are correct that often times it doesn't take a long time to input all itemized deductions, but if there are health care expenses it could take some time, especially if there were travel/mileage expenses related to doctor visits, etc. Then there are all the Rx drug purchases during the year, often multiple types of insurance payments (like Medicare Part B, Medicare Supplemental, Medicare Part D drug plan, etc), plus things like vision and dental expenses. Yes, I know that most people don't exceed 7.5% of AGI for their medical expenses, but when they do, it can take a fair amount of time to gather all that information.

Even if one is just deducting state and local taxes, plus mortgage interest payments, that takes more a few seconds, assuming that the client has actually got all those receipts for you. Then if itemizing, doing the charitable donations, asking about any casualty losses, etc, takes a some amount of time, that all added up could easily double or triple the amount of time one takes to do a tax return.

And..we just found the CPA who never prepared tax returns. If you seriously think it takes me more than 2 minutes to enter itemized deductions, you haven't prepared a tax return since 2017.

And if you think I spend ANY time looking at receipts and totaling them up, you haven't prepared a return since 2005 or earlier.

 

[davew9128]

If you think the IRS is bad, you should try doing a non-resident California state income tax return (needed for an investment in a publicly traded partnership that had income realized from CA, and 10 other states). That was a real nightmare, and at the time I did it, Turbo-Tax did not handle that for California (not sure if they do now).

I do them all the time. They take even MORE time when you sell them.

Your second point is exactly correct, but it takes time to do those calculations, and if a paid tax preparer is going to do that, it could affect the fee being charged. If it was just mortgage interest and state and local taxes, that might not take so long (if the client had all the documentation handed to the preparer), but some of the other stuff can be tedious (like the medical stuff I mentioned above) and easily double the amount of time needed to do the tax return.

As I posted previously, I will not tally up receipts. This is the year 2025. Get summary totals from your provider or go somewhere else.