Calculate your total potential itemized deductions. This calculator helps estimate if itemizing is beneficial for you.
Only amounts exceeding 7.5% of your Adjusted Gross Income (AGI) are deductible.
Limited to $10,000 per household. Includes state/local income or sales taxes, and property taxes.
Subject to AGI limitations, consult tax professional for details.
Note: Some deductions like unreimbursed employee expenses are suspended for many individuals under current law. Consult tax rules.
Understanding Itemized Deductions
Itemizing deductions allows taxpayers to subtract specific expenses from their taxable income, thereby reducing their overall tax liability. This is an alternative to taking the standard deduction. You should choose to itemize if your total itemized deductions are greater than the standard deduction amount applicable to your filing status.
Key Components of Itemized Deductions:
Medical and Dental Expenses: You can deduct qualified medical and dental expenses that exceed 7.5% of your Adjusted Gross Income (AGI). This includes costs for doctors, dentists, hospital stays, prescription medications, and health insurance premiums (if not paid with pre-tax dollars).
State and Local Taxes (SALT): This category includes state and local income taxes (or sales taxes, if you elect to deduct those instead) and state and local property taxes. However, the total deduction for SALT is capped at $10,000 per household per year.
Home Mortgage Interest: Interest paid on mortgage debt for your primary home and a second home can typically be deducted. There are limits on the amount of mortgage debt for which interest is deductible ($750,000 for acquisition debt for debt incurred after December 15, 2017, and $1 million for debt incurred before that date).
Investment Interest Expense: You can deduct interest paid on money borrowed to purchase taxable investments, up to the amount of your net investment income.
Charitable Contributions: Donations made to qualified charitable organizations are deductible. There are limits based on your AGI, and specific rules apply to different types of contributions (cash, property, etc.).
Other Deductions: This can include certain casualty and theft losses (if attributable to a federally declared disaster), and other miscellaneous deductions that may be subject to limitations or suspension depending on current tax laws.
How the Calculator Works:
This calculator sums up the amounts you enter for each category of itemized deduction. It does not automatically apply the 7.5% AGI limitation for medical expenses or the $10,000 SALT cap, as these require knowledge of your Adjusted Gross Income (AGI) and filing status, which are not inputs here. It also does not enforce other complex limitations on charitable contributions or investment interest.
The calculator provides a Total Potential Itemized Deductions figure. You should compare this total to the standard deduction amount for your filing status for the relevant tax year.
Single: $13,850 (for tax year 2023)
Married Filing Separately: $13,850 (for tax year 2023)
Married Filing Jointly: $27,700 (for tax year 2023)
Head of Household: $20,800 (for tax year 2023)
If your calculated itemized deductions exceed your standard deduction, itemizing is likely beneficial.
Disclaimer: This calculator is for informational purposes only and does not constitute tax advice. Tax laws are complex and subject to change. Consult with a qualified tax professional for personalized advice regarding your specific financial situation.
function calculateDeductions() {
var medicalExpenses = parseFloat(document.getElementById("medicalExpenses").value) || 0;
var stateAndLocalTaxes = parseFloat(document.getElementById("stateAndLocalTaxes").value) || 0;
var homeMortgageInterest = parseFloat(document.getElementById("homeMortgageInterest").value) || 0;
var investmentInterest = parseFloat(document.getElementById("investmentInterest").value) || 0;
var charitableContributions = parseFloat(document.getElementById("charitableContributions").value) || 0;
var otherDeductions = parseFloat(document.getElementById("otherDeductions").value) || 0;
var totalItemizedDeductions = medicalExpenses + stateAndLocalTaxes + homeMortgageInterest + investmentInterest + charitableContributions + otherDeductions;
var resultDiv = document.getElementById("result");
if (isNaN(totalItemizedDeductions) || totalItemizedDeductions < 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
} else {
// Format the result with commas and no currency symbol
var formattedTotal = totalItemizedDeductions.toLocaleString(undefined, {
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
resultDiv.innerHTML = 'Your Estimated Total Itemized Deductions: ' + formattedTotal + '';
}
}