Comments on: Itemized Deduction or Standard?

Question: Itemized Deduction or Standard?

naveed — Tue, 14 Apr 2009 15:39:46 -0800

I have donated about 11,400 to charity. I'm filing married filing jointly, so my standard donation is 10,900. I really don't have much in the way of other deductions. Should I use the 11,400 itemized deduction? Or use the 10,900 standard deduction and use the donations as deductions for next year?

By: Tomorrowful

Tomorrowful — Tue, 14 Apr 2009 15:42:48 -0800

The donations either happened in 2008 or they didn't; they go in this year.

By: naveed

naveed — Tue, 14 Apr 2009 15:45:14 -0800

Thanks for the reply Tommorrowful. I'm almost sure you can deduct donations that were'nt used as deductions. TurboTax for example has a place for 2007 contributions, which were excluded.

By: notned

notned — Tue, 14 Apr 2009 15:51:30 -0800

I don't think that it works the way that you think it does. They are deductible up to 50% of your income. So that's you. Deductible - 2008.

By: Sidhedevil

Sidhedevil — Tue, 14 Apr 2009 15:52:17 -0800

You can only carry over deductions in specialized circumstances (most commonly when you've exceeded your deduction limit). See IRS Publication 526.

By: notsnot

notsnot — Tue, 14 Apr 2009 16:21:13 -0800

Yeah, smoke 'em while you've got 'em. With those donations, plus itemized personal deduction, plus whatever other crap, you're gonna be *way* over the standard. Much worth it.

By: valkyryn

valkyryn — Tue, 14 Apr 2009 16:48:15 -0800

Tommorrowful and notned are correct: donations that occurred during 2008 are only deductible in 2008 except for limited exceptions. Sidhedevil mentions the appropriate publication, from which I quote:

You can deduct your contributions only in the year you actually make them. . .

The only exceptions there have to do with either donating more than you can deduct in a given year (at least 30-50% of your income) or which are too specialized to be worth discussing.

You really should look around to see if there's anything else you can itemize: education, health care, mortgage interest, etc.

By: cortex

cortex — Tue, 14 Apr 2009 17:11:04 -0800

See in particular page 13 of Pub 526, "When To Deduct" and "Limits on Deductions". Page 15, "Carryovers", addresses the notion of carrying over over-the-limit deductions as clarified by folks above already.

When you say you don't really have much in the way of other deductions—what about state income/sales tax? Mortgage interest?

By: zompus

zompus — Tue, 14 Apr 2009 22:55:49 -0800

Keep in mind your state/local taxes are deductible.

By: naveed

naveed — Wed, 15 Apr 2009 07:03:41 -0800

Thanks everyone. I'm in FL so no state income tax and education-wise, I spend about a thousand. I rent, so no mortgage.

Based on general consensus, it sounds like I'm better off with the itemized deduction.

By: Dec One

Dec One — Wed, 15 Apr 2009 11:16:36 -0800

You can deduct state sales tax in lieu of state income tax. I believe there is a way to estimate this if you don't have records. Read the instructions for Schedule A.

Education expenses aren't part of itemized deductions; they go elsewhere on the tax return. Medical expenses are deductible only to the extent they exceed 7.5% of your income.

By: misha

misha — Wed, 15 Apr 2009 11:39:58 -0800

I'm in Florida, too, and I'm definitely sharing the "better off with itemized deduction" consensus here based on your situation.

I know that's not a new answer, but I also just wanted to tell you that you are awesome for contributing that much to charity!

By: naveed

naveed — Wed, 15 Apr 2009 15:39:21 -0800

Thank you, Misha