Who Should Take the Standard Deduction Who Is Best Suited for Itemizing
Thomas Brock says most people benefit from the standard deduction, but itemizing makes sense if you own a home, have high medical bills, give generously to charity, or run a sole proprietorship.
Video Transcript
Ever since the Tax Cut and Jobs Act of twenty eighteen, the average person benefits most from taking the standardized deduction. This is largely due to the ten thousand dollars aggregate limit the IRS has placed on property tax, sales tax, and state and local income tax. That said, itemizing deductions does make a lot of sense for some people. Usually they can answer yes to one or more of the following questions. Do you own a home? Do you have a lot of medical bills? Do you give away a lot to charities? And do you have a sole proprietorship, whether it's a home based business or otherwise?
