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The primary ways to plan for taxes are under standard deductions or itemized ones. The simpler, more commonly used method is the standard deduction, which may be seen as a catch-all, and take much less effort for the planner, as it is a a set amount (which may change periodically). The itemized selection may occasionally save the taxpayer more money, but there are more parts to it, and more things to input. I personally have always taken the standard deduction because it was the easier way to go about having my taxes done, and I don't know of anyone who regularly itemizes their return.

Answer 1

Answer is as under :

The primary ways to plan for taxes are under standard deductions or itemized ones. The simpler, more commonly used method is the standard deduction, which may be seen as a catch-all, and take much less effort for the planner, as it is a a set amount (which may change periodically). The itemized selection may occasionally save the taxpayer more money, but there are more parts to it, and more things to input. I personally have always taken the standard deduction because it was the easier way to go about having my taxes done, and I don't know of anyone who regularly itemizes their return.

The benefit of Standard deduction over itemized deductions are :

1) For taxpayer it is easy to understand

2) It is very simple to apply while filling return of income and less time is required to file the return

3) Many times it is more than itemized deduction and hence beneficial for tax payer

Taxpayer are advisable to take standard deduction mostly. Itemized deduction should be considered only when the total itemized expenses deduction is more than standard deduction limit. However , itemized deduction results in more time and confusion for a taxpayer as more collection of documents are required and also they should be aware about the restriction on itemized deductions.

90% of taxpayer prefer standard deduction over itemized deductions