Tax Tantrum Tuesdays: You have arrived...

....when you can itemize. hahaha (In the tax world)

I told you all the day would come that I would explain itemized deductions. That day is here. Below is the Schedule A: Itemized Deductions tax form. There are so many fun deductions on here that you could rack up on some serious tax savings if you're able to accumulate enough of them to exceed the standard deduction of $5,700.

YOU HAD NO IDEA DID YOU?

When all of the items on this schedule are greater than the standard deduction ($5,700), you can deduct this schedule instead. That means if it's $6,000 you get to deduct that instead of  $5,700. If it's $10,000, you get to deduct that instead of $5,700. If it's $25,000 you get to deduct $25,000 instead of $5,700. Do you get my drift here?

You have arrived when you can itemize.

Let me put it like this. Remember when I talked about my tithes...Say I'm attempting to give the church $6,000 a year. Let's add to that my state income tax (which is withheld from my paycheck AND will go up in 2011), which this year was about $2,200. That's $8,200 of deductions PLUS my $2,500 deduction for student loan interest. This is without me even owning a home! That's a much bigger refund than I'm getting for 2010.

This is my version of effective tax planning. heh heh. I'm sure to be MUCH more excited about taxes next year. Lehgo!