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Itemized Deductions vs Standard Deduction There are two ways you can take deductions on your tax return: you can itemize deductions or use the standard deduction. The standard deduction is a set amount and is based on your filing status. If you itemize your deductions you will take the actual amount you spent on allowable deductions which include: ​ Mortgage interest paid on your personal residence State income taxes paid Real estate taxes paid on your personal residence Medical expenses paid including out-of-pocket premiums paid Charitable donations Each of these deductions is subject to various limitations. Since the passage of the Tax Cuts and Jobs Act in 2017, most taxpayers will benefit more from taking the standard deduction than from itemizing their deductions.

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Close Additional expenses that may qualify depending upon circumstances: Counseling Temporary housing Internet upgrades and new phone plan Meal and other food delivery and preparation services Protective items (hand sanitizer, masks, gloves, etc. ) Travel cost and parking costs (if driving to avoid taking public transportation) Costs of establishing or improving a home office Costs of remodeling to allow an elderly or high risk person to live with you Gym equipment Home security upgrades

Adjusted Gross Income Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account. Many deductions and credits on your tax return are determined by your AGI.