One of these days, when we no longer have a mortgage, I can see us taking the standard deduction. That’s hoping we don’t have high medical and dental expenses. Fingers crossed!
But, for now, we itemize. And this means that every dollar we itemize is a dollar credited against our income; a dollar we aren’t taxed on. Since we’re in the 25% marginal tax bracket, every dollar itemized saves us 25¢ in taxes owed. This is why I keep careful track of all our charitable donations.
Another expense that can be itemized is the owner’s tax portion of your vehicle registration. It doesn’t amount to much, especially if your cars are old, like ours are. Still, we were able to include $77 on the personal property taxes line. I’d rather not pay the additional $20 in taxes, so I’m very willing to save a copy of each vehicle registration tax receipt when it comes in the mail.
I have a handy, dandy tax folder right here in my desk drawer.