8 Tax Tips You Should Definitely Take Advantage of This Year

3. See if bundling your deductions could increase your tax savings

When you actually claim the standard deduction instead of itemizing, you basically lose out on the chance to claim a deduction for specific expenses you’ve incurred. For example, you can’t deduct for mortgage interest or charitable contributions.

You’ll still want to take advantage of the standard deduction if it offers more tax savings. However, one option you should definitely benefit from itemizing deductions is to bundle your deductions so they add up to a greater amount than the standard deduction.

So, instead of making small contributions to a charity every single year, you should save that money up and make one larger contribution in one year. If the value of the deduction for the larger contribution is more than the amount of your standard deduction, you can itemize in that year and score the tax savings you deserve for your goodness.