Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
First year w/o itemizing for taxes since 1985
Old 02-03-2020, 03:20 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Apr 2008
Posts: 1,622
First year w/o itemizing for taxes since 1985

This will be the first time since 1985 that my DW and I will not be able to itemize deductions for taxes. We're not even close to the standard deduction (mortgage was paid off late 2018; rented for half of 2019, property tax (TX) based on land value for 2019 with new house build).

As usual, we're filing with TurboTax. Does it make any sense to fill in what deductions we do have (small property taxes, charitable contributions, medical expenses beyond 7.5%) if TurboTax is just going to apply the standard deduction?
statsman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-03-2020, 03:29 PM   #2
Full time employment: Posting here.
 
Join Date: Nov 2016
Location: Fargo
Posts: 813
I continue to enter my deductions in.

At the end I get a summary that compares previous years and standard vs itemized.

I am tempted to not type it in for 2019, but I probably will.
bloom2708 is offline   Reply With Quote
Old 02-03-2020, 03:40 PM   #3
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 24,382
We haven't itemized for I guess about 20 years. After we paid off the house the standard deduction got us the lower tax so that's what we use.
__________________
When I was a kid I wanted to be older. This is not what I expected.
Walt34 is offline   Reply With Quote
Old 02-03-2020, 03:45 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 12,678
I don't bother when I know there's no way I come out ahead itemizing. No need to add any more work to doing taxes, IMO.

If you live in a state where you can claim standard on federal, but itemize on state, you might want to do it. My state doesn't allow this.
RunningBum is offline   Reply With Quote
Old 02-03-2020, 03:47 PM   #5
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 953
We entered everything last year even though I knew we would be using the standard deduction. One or two of the items ended up coming into play on the state taxes. I think charitable deductions might have been one of them.
__________________
Well it's all right, we're heading to the end of the line...
Clone is offline   Reply With Quote
Old 02-03-2020, 03:53 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Apr 2008
Posts: 1,622
Quote:
Originally Posted by RunningBum View Post
I don't bother when I know there's no way I come out ahead itemizing. No need to add any more work to doing taxes, IMO.

If you live in a state where you can claim standard on federal, but itemize on state, you might want to do it. My state doesn't allow this.
That's what I was thinking. Since we moved from CA to TX in late 2018, we won't file a state return for the first time since high school (at least for me) this year.
statsman is offline   Reply With Quote
Old 02-03-2020, 04:19 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 33,670
Quote:
Originally Posted by RunningBum View Post
I don't bother when I know there's no way I come out ahead itemizing. No need to add any more work to doing taxes, IMO. ...
+1
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is online now   Reply With Quote
Old 02-03-2020, 04:57 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2015
Location: Beaverton
Posts: 1,382
We live in a state when they will carry over itemized deductions to subtract off state income tax. So, yes I do. Since itemizing takes twenty minutes on TT with info carryover it's no big deal. All the time spent is inputting K-1's. So nice now to import out of Schwab and Fidelity for CG's.
__________________
Jump in, the water's warm.
Bir48die is offline   Reply With Quote
Old 02-03-2020, 05:58 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2016
Posts: 6,792
I don’t bother. I know I am below the standard deduction. If you enter them TT just tells you the standard deduction is best for you and you’ll never get that 10 minutes of your life back.
COcheesehead is offline   Reply With Quote
Old 02-03-2020, 10:20 PM   #10
Recycles dryer sheets
 
Join Date: Oct 2019
Location: Los Angeles
Posts: 81
Quote:
Originally Posted by Bir48die View Post
We live in a state when they will carry over itemized deductions to subtract off state income tax. So, yes I do.

Ditto...I live in a state where you can take the standard deduction on federal and itemize on state (I believe the state (CA) standard deduction is $4537) so it's always worth it to itemize (my property taxes alone exceed the state standard deduction)
Out_the_Door is offline   Reply With Quote
Old 02-04-2020, 05:12 AM   #11
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 4,175
Quote:
I don't bother when I know there's no way I come out ahead itemizing. No need to add any more work to doing taxes, IMO.

If you live in a state where you can claim standard on federal, but itemize on state, you might want to do it. My state doesn't allow this.
+2
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 02-04-2020, 05:31 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Aug 2017
Posts: 1,203
Waste of life to gather the information if I can't use it.
badatmath is offline   Reply With Quote
Old 02-04-2020, 05:51 AM   #13
Thinks s/he gets paid by the post
rk911's Avatar
 
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,128
we continue to enter the data. it’s EZ enough to do and i like seeing how it compares to previous years.
__________________
Rich
Ham Radio, Sport Pilot, RVer
FIRE: 8/11/2005, age 55y,1d
Administrator for a regional 9-1-1 call center
rk911 is offline   Reply With Quote
Old 02-04-2020, 06:25 AM   #14
Recycles dryer sheets
 
Join Date: Dec 2009
Location: Ft Lauderdale
Posts: 97
Itemizing was always what took the longest time for me. Last year was my first year I benefited from the larger standard deduction. After starting, it didn't take me long to see I was never going to reach the SD. Taxes are a breeze now. Import my stuff from Fidelity and everything goes to where it's supposed to without any effort on my part. Some of my accounts are managed with a lot of buying, selling with capital gains, wash sales, etc. A nightmare if I had to figure that out myself. Plug in a few other things like bank interest, annuity income, SS and I'm DONE! Piece of cake! No need putting in itemized deductions. Waste of time IMO. I like easy.
Tracer is offline   Reply With Quote
Old 02-04-2020, 06:30 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,623
As a few others posted, I get to deduct some of my medical from State, so I track all of the old deductions.
But starting in 2021 I'm getting an accountant.
TurboTax almost cost me $250 by taxing DW's NJ pension. This is not taxable until her benefits exhaust her contributions. Yeah, Turbo did have a place to factor this in, but unless I looked for it I could have very easily missed it.
In another year or two I'll be drawing on some of our tax-deferred accounts, and they are a mix of pre and post-tax federal and state. I don't trust Turbo to handle that correctly.
mystang52 is online now   Reply With Quote
Old 02-04-2020, 07:24 AM   #16
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 266
So if not itemizing can you just use the 1040 ez form from IRS? Why turbo tax if taxes are simple. This will be our last yr also but we've always used the same cpa. He sent out a letter end of Dec saying he was quitting to spend more time on his other businesses. We weren't impressed by his timing so close to filing and asked that he finish out ours as we decided to close out a small business a yr earlier as we didn't want to go find another cpa. Looking forward to very simple tax filings!
Hyper is offline   Reply With Quote
Old 02-04-2020, 08:17 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 4,071
Ditto...also note that under the new rules the number of dependents no longer matter either...as long as you don't need a particular one for a credit.
ncbill is offline   Reply With Quote
Old 02-04-2020, 08:36 AM   #18
Dryer sheet aficionado
 
Join Date: Apr 2018
Location: Apex
Posts: 25
Quote:
Originally Posted by Hyper View Post
So if not itemizing can you just use the 1040 ez form from IRS?
There is no 1040-EZ any more, but there are a bunch of free filing options at irs.gov/freefile. I've been filing for years filling out the actual forms online without using turbotax; it's really not that hard.
londo is offline   Reply With Quote
Old 02-04-2020, 08:40 AM   #19
Thinks s/he gets paid by the post
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 1,337
Quote:
Originally Posted by RunningBum View Post
I don't bother when I know there's no way I come out ahead itemizing. No need to add any more work to doing taxes, IMO.

If you live in a state where you can claim standard on federal, but itemize on state, you might want to do it. My state doesn't allow this.

Plus 1 for me too!
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 02-04-2020, 08:46 AM   #20
Thinks s/he gets paid by the post
USGrant1962's Avatar
 
Join Date: Dec 2016
Location: DC area
Posts: 2,186
Quote:
Originally Posted by RunningBum View Post
...

If you live in a state where you can claim standard on federal, but itemize on state, you might want to do it. My state doesn't allow this.
My state requires you to use the same election as your federal tax, and last year I saved more in state taxes than lost in federal by itemizing less than $24K. Though OP is in Texas so state income taxes are not a factor.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged

"All models are wrong, some are useful." - George Box
There is always a well-known solution to every human problem: neat, plausible, and wrong. - H.L. Mencken
USGrant1962 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Itemizing aaronc879 Other topics 32 12-20-2016 11:35 AM
Itemizing vs Standard Deduction for 2015 JOHNNIE36 FIRE and Money 20 04-11-2015 06:46 PM
First year of FIRE: did your taxes from the year before shock you? BBQ-Nut FIRE and Money 20 09-30-2014 01:05 PM
Look How Quickly the US Got Fat? (1985-2010) Midpack Health and Early Retirement 149 04-21-2013 09:47 AM

» Quick Links

 
All times are GMT -6. The time now is 05:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.