An important question to ask your tax preparer or accountant is, “Should I take the standard deduction amount or itemize my deductions?” Taking the standard deduction is quicker and easier; but if you kept good records of your deductions and know they exceed the standard deduction you should itemize.

New for 2020 - cash donations of up to $300 are deductible without having to itemize thanks to the Coronavirus aid, Relief and Economic Security Act. This allows for taxpayers to claim a deduction of up to $300 for cash donations made to charity during 2020.

The amount of the standardized deduction changes every year and varies based on the filing status. If you are 65 or older at December 31, 2020 you may qualify for a higher standard deduction.

If you think you have more deductions than the standard deduction then you can itemize your deductions by filing a Schedule A, Form 1040 Itemized Deductions or Form 1040-SR for Seniors.



Once you add up your deductions ask your tax preparer or accountant to review both options to get you the best result. You can always check out the definitions and amounts on the IRS Website.