A
A GOOD
A GOOD DAY TO STAY INSIDE AND MAYBE DO YOUR TAXES 4@BECAUSE IT'S TIME TO GET YOUR TAX
RETURNS IN ORDER. BUT WHICH IS
THE BEST OPTION TAKING TH4@E
STANDARD DEDUCTION OR ITEMIZING
RETURNS IN ORDER. BUT WHICH IS THE BEST OPTION TAKING TH4@E STANDARD DEDUCTION OR ITEMIZING@
EXPLAINS CHRIS HARPOLD AN
INSTRUCTOR AT GRANDVILLE STATE
UNIVERSITY AND 4@YOUR MANAGER
WITH HUNGERFORD SCHOOLAND.
NICHOLS. GOOD TO SEE YOU AS
ALWAYS. MORNING. SO IT'S THE
ITEMIZE TO ITEMIZE ARE NOT
ITEMIZED QUESTION 4@BUT A LOT O
PEOPLE HAVE THIS TIME OF YEAR.
SURE. WHAT ARE THE PROS AND
CONS 4@WOULD YOU JUST WANT TO
PICK THE BIGGER THE TWO NUMBERS
REALLY MEAN? HERE'S THE DEAL.
THE IRS GIVES YOU. CONGRESS 4@
GIVES YOU A STANDARD DEDUCTION
DEBATE BASED ON YOUR FILING
STATUS. RIGHT. IF HOWEVER YOU
HAVE ITEMIZED DEDUCTIONS THAT
EXCEED THAT THEN YOU WANT TO
CLAIM THE ITEMIZED DEDUCTIONS
AND THAT NUMBER WOULD REMIND ME
THEN THE NUMBER GO UP LACETT.
AGAIN LAST WHETHER YOU'RE
BEFORE FOR 2018? SO RIGHT WE'VE
BEEN TALKING ABOUT IT
TWOTHOUSAND 18 TAX YEAR ALL THE
STANDARD DEDUCTIONS NEARLY 4@4@
DOUBLE WHAT THAT REALLY MEANS
IS THAT IT WON'T BE EVENTSALL 4@
FOR A LOT OF TAXPAYERS TO ITEM.
RIGHT. IT WAS PART OF TAX
SIMPLIFICATION NATION FOR SURE.
SO WHAT ARE WHAT ARE SOME OF
THE. GIVE ME A SCENARIO WHERE 4@
SOMEONE WOULD WANT TO ITEMIZE
WHAT TYPES OF THINGS CAN YOU
LEGITIMATELY LEGITIMATELY
ITEMIZE AND NOT GET IN TROUBLE
FOR. SURE 4@MORTGAGE INTEREST I
PROBABLY ONE OF THE MOST COMMON
YOU SHOULD KNOW THAT THAT IS
LIMITED ON THE FIRST SEVEN
HUNDRED AND FIFTY THOUSAND
DOLLARS OF DEBT WHICH FOR MOST @
PEOPLE BUT TH4@AT COVERS. YEAH.
IN FACT IF YOU'RE 4@MORTGAGE WA
ORIGINATED BEFORE DECEMBER OF
2017 IT'S 4@MILLIONDOLLARS OF
DEBT. SO MORTGAGE INTEREST ON
YOUR PR4@IMARY RESIDENCE 4@AND
OTHER HOME. OK OK. HOME EQUITY
INTEREST USED 4@TO BE PRETTY
LARGELY DEDUCTIBLE BUT THAT'S 4@
BEEN CURTAILED A LITTLE BIT
ONLY DEDUCTIBLE IF IT'S USED
GENERALLY 4@TO PURCHASE OR
IMPROVE YOUR HOME OR A SECOND
RESIDENCE. SO SOMETIMES PEOPLE
USE HOME EQUITY INTEREST TO BUY
A CAR OR SOMETHING LIKE THAT. 4@
NOT GONNA BE DEDUCTIBLE 4@WHAT
ABOUT MY TWENTY THREE
DEPENDENTS? OK I GUESS I CAN'T
ALL HUMANS RIGHT. YES EXACTLY.
THE DEPENDENTS 4@WOULD FALL UND
SOMETHING WE CALL A PERSONAL
EXEMPTION WHICH ACTUALLY IS NOT
A DEDUCTION 4@RIGHT. UNDER
CURRENT TAX LAW. BUT WE 4@DO HA
STATE AND LOCAL TAXES LET'S SAY
YOU PAY TAX TO THE STATE OF
MICHIGAN OR HERE 4@STATE CITY O
ROCKFORD 4@WE WERE JUST
DISCUSSING WE WERE OR ARE YOUR
PROPERTY TAXES 4@AND YOUR HOME.
THOSE ARE DEDUCTIBLE BUT THOSE
ARE CAPPED. THAT CATEGORY 4@IS
CAPPED AT TEN THOUSAND DOLLARS
PER YEAR OK. THE OTHER BIG ONE
IS CHARITABLE CONTRIBUTIONS.
RIGHT. RIGHT. YEAH OF COURSE.
CHURCH OR QUALIFIED CHARITIES
YOU WANT TO MAKE SURE THAT THE
CHARITY ACTUALLY QUALIFIES 4@IF
YOU HAVE ANY DOUBT. YOU CAN GO
TO IRS DOT GOV AND THEY HAVE A
LOOK UP. YOU CAN LOOK UP THE
CHARITY AND IT'S NOT JUST CASH
CONTRIBUTIONS BUT IT'S PROPERTY
TOO. LIKE IF YOU GIVE CLOTHING
TO GOODWILL OR SALVATION. BUT
AGAIN THEY ALL HAVE TO ADD UP
TO BE MORE THAN YOUR STANDARD
DEDUCTION 4@WHICH AS YOU SAID
WENT UP CONSIDERABLY OR A
COUPLE OF YEARS AGO? YEAH 4@IF
YOU'RE MARRIED FILING JOINT
YOUR STANDARD DEDUCTION IS JUST
NORTH OF TWENTY FOUR THOUSAND
DOLLARS TO GIVE AN EXAMPLE. SO
IF YOU HAVE A REGULAR 4@9 TO 5
JOB WHERE YOUR EMPLOYER TAKES
OUT TAXES ON A REGULAR BASIS 4@
OPPOSED TO MAYBE YOU'RE AN
INDEPENDENT CONTRACTOR 4@IS THA
WHEN IT GETS A LITTLE MORE
DICEY LIKE IF YOU'RE AN
INDEPENDENT CONTRACTOR 4@AND YO
WANT TO SAY DEDUCT GAS MILEAGE
OR WEAR AND TEAR ON THE CAR CAN
YOU DO THAT. YOU CAN. AND IN
FACT THOSE WOULD ACTUALLY BE
BUSINESS DEDUCTIONS NOT TYPICAL
ITEMIZE. OK. OK. SO IF YOU HAVE
A SIDE BUSINESS LIKE THAT.
RIGHT. YOU KNOW A COUPLE OF
WEEKS AGO WE TALKED ABOUT BEING
UBER LYFT DRIVER AND SHIP THOSE
WOULD DEFINATELY REDUCED
DEDUCTIONS BUT BUSINESS TYPE
DID OK. THIS WAS NOT 4@PERSONAL
YOULL. WHAT'S THE BIGGEST
MISTAKE PEOPLE MAKE THIS TIME
OF YEAR DO 4@YOU THINK. OH THE
BIGGEST MISTAKE 4@YOU KNOW ONE
THE THINGS I THINK ABOUT IS4@ I
YOU 4@OWE WITH YOUR TAX RETURN
LET'S SAY YOU GET THIS SUPRISE
OH MY GOD. YOU SEE THAT NUMBER
IS 4@THEY4@ MIGHT JUST KIND OF
FILE AND IT'S IMPORTANT TO KNOW
OH MY GOD. YOU SEE THAT NUMBER IS 4@THEY4@ MIGHT JUST KIND OF FILE AND IT'S IMPORTANT TO KNOW@
THAT THE PENALTY FOR FAILURE 4@
PAY IS FAR LESS SEVERE THAN THE
PENALTY FOR FAILURE 4@TO FILE.
EVEN IF YOU FIND OUT THAT YOU
OWE A BALANCE WITH YO4@UR TAX 4@
IT'S BETTER TO FILE AND NOT PAY
EVEN IF YOU FIND OUT THAT YOU OWE A BALANCE WITH YO4@UR TAX 4@ IT'S BETTER TO FILE AND NOT PAY@
THAN FREAK OUT AND BE SCARED
AND NOT FILE EXACTLY FILE PAY 4@
AS MUCH AS YOU CAN AND THEN
AGGRESSIVELY A4@TTACK THAT DEBT
BUT IF YOU TRY TO HIDE FROM IT
THE PENALTY FOR NOT FILING IS
FAR WORSE AND THEY'LL FIND YOU
YEAH THEY WILL. YES THE IRS
KNOWS ABOUT ALL WTI AND TEN
NINETY NINE. IT'S JUST A MATTER
OF TIME. ALWAYS GREAT ADVICE
SIR. APPRECIATE IT. AND AS
ALWAYS JUST REMEMBER THIS IS
GENERAL TIPS. GENERAL 4@ADVICE
YOU'VE GOT QUESTIONS ABOUT YOUR
SPECIFIC SITUATION CONTACT YOUR
FINANCIAL ADVISER AND YOU CAN
FIND OUT ALL OF THESE TIPS ON
OUR WEB SITE ON 4@13
ONYOURSIDEDOTCOM. WE'LL BE
RIGHT BACK.