The $10,000 limit on deductions for state andlocal taxesmay be a deciding factor for residents of high-tax states. If a married couple in the state cannot find the additional balance in eligible deductions on top of the $10,000, they'll likely choose the standard deduction. Many taxpayers...
Itemized deductions also reduce yourAdjusted Gross Income (AGI), but work differently than the standard deduction. As the name implies, the standard deduction is a standard (or fixed) amount. In contrast, the itemized deduction is a dollar-for-dollar deduction. And the amount differs from taxpay...