Advantages of Filing Married Filing Jointly

• If you both work and you are married, you can take advantage of more tax deductions and credits if you file jointly. However, if you file separately, you may not qualify for some deductions or the deductions may be limited more than if you filed jointly. It is also easier to take advantage of all of the deductions, since you will not need to separate your expenses and decide who gets to claim which deduction. An accountant can help you make the right decision for your financial situation.
  
  

Things You Can Itemize

• When you itemize, you claim deductions for specific expenses that the IRS allows you to subtract from your gross income. Some common deductions include the interest on your mortgage, charitable contributions, education expenses and medical bills that you pay. You will need to have a record for each of these transactions, which means a receipt or a report from the bank regarding the expenses to qualify to claim them.
  
  

When to Itemize

• The IRS offers a standard deduction for all people who file their taxes. If your itemized deductions total more than the standard deduction, you should itemize. This will further reduce the amount of taxes you owe to the federal government and save you money. To itemize, you will need to file using Form 1040. If you use an accountant or tax preparation software to file your taxes, he will help you choose the correct form and fill out any additional schedules you need to file to itemize.
  
  

When Not to Itemize

• If the total of your itemized deductions is less than your standard deductions you should not itemize because you will end up owing more in taxes. However, you may still be able to take advantage of above the line deductions, such as the student loan interest deduction and credits that you can claim to reduce the amount you need to pay in taxes. These credits may include the child tax credit, the child and dependent care tax credit and the Earned Income Credit.