How many times we are asked this question. The answer is different depending on your tax situation.

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By the way, we can audit proof your tax return. Have Fresh Start Tax LLC prepare your next Federal and State Tax Returns.

As a General Rule:

You must decide whether to itemize deductions or to use the standard deduction.

The standard deduction is a dollar amount that reduces the amount of income on which you are taxed.

You should itemize deductions if your allowable itemized deductions are greater than your standard deduction. Some taxpayers must itemize deductions because they cannot use the standard deduction.

You cannot use the standard deduction if:

1. You are married and filing a separate return, and your spouse itemizes deductions
2. You are a nonresident alien or a dual-status alien during the year, or
3. You are filing a tax return for a period of less than 12 months because of a change in your annual accounting method

In addition an estate or trust, common trust fund, or partnership cannot use the standard deduction.

For additional information, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information.

You may benefit from itemizing your deductions on Schedule A if you:

1.Cannot use the standard deduction
2.Had large uninsured medical and dental expenses
3.Paid interest or taxes on your home
4.Had large unreimbursed employee business expenses
5.Had large uninsured casualty or theft losses, or
5.Made large charitable contributions

All of these larger deductions should be able to be easily proved because tax returns with real high deductions are more likely to be pulled for a tax audit.

You may be subject to limitations on some of your itemized deductions. Please refer to the Form 1040 Instructions or Form 1040, Schedule A Instructions for the limitation amounts.Note: For 2010, taxpayers with adjusted gross income above a certain amount will no longer lose part of their itemized deductions.

Call us today to have Former IRS Agents and Managers prepare your tax returns.