4. Collect your receipts
As you probably know, which receipts you’ll need to give depends on whether you itemize your deductions or claim the standard deduction. We all want to select the one that gives up the greater write-off, but, the only way to determine that is to add up your itemized deductions and compare that with your standard deduction.
For the 2019 tax year, the standard deduction for single taxpayers was $12,200 and for married couples filing jointly it was $24,400. For this year, these amounts rise to $12,400 for single taxpayers and $24,800 for married couples filing jointly.
However, you should look for receipts of medical costs which weren’t covered by insurance or reimbursed by any other health plan. There’s a trick though: Be sure they’re substantial enough, so it may be worth your while to itemize.
So, if you opt for itemizing your deductions, you’ll also need to gather any back-up you have for charitable contributions. For example, contributions of $250 or more require a written acknowledgment from the charity stating the exact amount of your gift and that you did not receive anything in return.
If you don’t have this type of acknowledgment, you should contact the charity and request it as soon as possible. You can find more details on charitable deductions in IRS Publication 1771.
Also, you will need to share your books and records, if you have a business income and expenses to report on Schedule C. The better organized your records are, the less time it will take a preparer to process your taxes, which means less money for their service.
