8 Tax Tips You Should Definitely Take Advantage of This Year

2. Do the math on itemizing versus the standard deduction

You don’t pay taxes on all the income you earn. So, you’re allowed to claim a standard deduction, which is actually a flat amount you can deduct based on your filing status. However, you also have the option to itemize instead of claiming the standard deduction.

The Tax Cuts and Jobs Act, passed in 2017, significantly maximized the standard deduction. In order to make sure you’re minimizing your income by the largest possible amount, you should add up the value of all your itemized deductions and compare it to the standard deduction. Then, claim whichever is bigger.