GREENSBORO, N.C. — It's time to do your taxes and you have a choice to make. Either you're going to take the standard deduction or you're going to itemize your deductions.
How do you decide which one?
STANDARD DEDUCTION
The standard deductions change depending on how you file.
$12,950 Singles, married filing separately
$25,900 Married filing joint
$19,400 Filing head of household
The majority of taxpayers take the standard deduction.
ITEMIZING
You would itemize if your state and local taxes, your mortgage interest, your charitable contributions and medical expenses, and other deductions (like alimony paid, etc) added up to more than the numbers listed. It's worth taking the time to do the math if you have these types of deductions.
TAX CREDITS
Earned Income Credit. This is for folks with low to moderate incomes and can lead to a credit of up to $6,900.
There are also a number of child tax credits that many parents may be able to get, including the dependent credit.
If you're paying for college, see if you qualify for the American Opportunity tax credit.
DOUBLE-CHECK THESE NUMBERS
Don't forget to double-check your social security numbers, it's a common mistake to mix up the numbers and go over your bank routing number a few times. You don't want your refund going anywhere but to your account.
TAX DAY IS APRIL 18
Tax Day is April 18, 2023.
"If you can't get your act together by April 18th and need an extension, use form 4868, which gives you an extra six months to file. But it's important to note: an extension to file is not an extension to pay. That means you need to estimate and pay any owed taxes by the April 18th deadline to avoid potential penalties and interest," said Jill Schlesinger, CBS News Business Analyst.