TAXES | To Itemize Or Not To Itemize, That Is The Question
When filing a personal federal income tax return, tax payers can either use the standard deductions or itemize their deductions. Up until this year, 2018, taxpayers with mortgage interest almost always itemized their deductions. However, the 2017 tax reform, aka Tax Cuts and Jobs Act (TCJA) makes the decision to itemize much more complicated.
Under the TCJA it is far less likely the sum of itemized deductions for most tax payers will exceed the increased standard deductions. The Tax Policy Center estimates the total number of taxpayers who itemize their deductions will drop by over 50% from 2017 to 2018.
Most of the TCJA changes that impact you are directly related to your decision whether you should itemize. There are a number of factors that will impact this decision. Ultimately, taxpayers should work with their team of advisors to determine whether itemizing is the right choice.
As always, we recommend you consult with your tax advisor to determine how these changes affect your personal circumstances.