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To: LostInBayport
Ok, tax wizards of FR. I usually itemize, but the calculators posted in this thread say I will save a lot if I opt instead for the standard deduction. Are there any tax or accounting rules forbidding me from deciding “hey, this year I don’t wanna itemize”?

No. There is no rule that says if you itemized previously that you cannot opt not to in any subsequent year and the IRS allows you to choose which ever method from year to year that allows you to pay the lower amount of tax. Keep in mind that tax avoidance by following the rules is perfectly legal whereas tax evasion (hiding, not reporting taxable income or claiming deductions you are not entitle to) is not.

In fact, many tax programs like H&R Block Tax Cut, Turbo Tax, etc., lets you enter what you are able to deduct if itemizing and then will tell you if you pay more or less by taking the standard deduction.

83 posted on 12/03/2017 5:28:15 AM PST by MD Expat in PA
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To: MD Expat in PA
There is no rule that says if you itemized previously that you cannot opt not to in any subsequent year and the IRS allows you to choose which ever method from year to year that allows you to pay the lower amount of tax.

Thank you for that answer! I think I will be one of the people who benefit from the new tax law. I always itemized but even that sum wasn't too far ahead of the combined standard deduction and personal exemption. Using the new standard deduction will shave thousands off my tax liability if the bill remains unchanged.
98 posted on 12/03/2017 7:22:22 AM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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