Form 1040-EZ vs. Form 1040 Schedule A 2017-2023

So, in this video, I want to go over itemized deductions on a 1040 tax return. The reason I want to go into detail on this is because many tax preparers are asking their clients to provide information on itemized deductions such as charitable contributions, medical expenses, and mortgage interest. However, often this is completely unnecessary if you can't itemize. For example, let's consider a single filer named John Q Taxpayer. If you're a single filer in the U.S., you will receive a standard deduction. In 2019, it was $12,200, and it will increase for 2020. Everyone gets this standard deduction. Therefore, the only reason to itemize would be if your total itemized deductions exceed that amount. Now, let's take a look at a sample schedule A with some model itemized deduction information for John. At the end, you'll see that all of this was a waste if your tax preparer charges you on an hourly basis to prepare the return and they enter all this information. If your total itemized deductions don't exceed the standard deduction, then you wasted your time and the tax preparer overcharged you. It's not beneficial for you as a taxpayer. Before you dive into tax season, ask yourself if you will have itemized deductions that exceed the standard deduction. If not, then don't bother compiling all that information. For example, John had $1,750 in unreimbursed medical expenses. However, this is useless because you can only deduct medical costs as an itemized deduction if it exceeds 7.5% of your Adjusted Gross Income (AGI). In John's case, his AGI is $81,000, so nowhere close to the required percentage. If John spent time going through his receipts and gathering medical expenses, it would be a complete waste of time. There's no purpose in including it in the...