Standard vs Itemized ? long...

I typically file our taxes through Turbo Tax, but this year my husband wants us to take our taxes to a "professional". Reason being, we owe. He was talking to a guy that he was working with, and the guy told him that for years he owed when he did his taxes himself, but when he began taking his taxes to...I'm not sure who, he would get a refund.

My husband and I began talking about our taxes today, again, and I asked him who the guy takes his taxes to and if the guy takes the standard deduction or itemizes. I'm going to assume the guy itemizes since the place he takes his taxes to uses his gas expenses as a deduction (without receipts). The guy is single so his standard deduction is less than ours since we are married filing jointly, and the only way itemizing would help us is if our itemized deductions were greater than 2% of our income and greater than the $11,900 standard deduction, yes? And you can only use the amount that is above the 2% of your income as a deduction, correct?

Our taxes are simple, we have nothing to itemize and I don't like the idea of itemizing smurf we do not have receipts or documents for even if we actually did spend the money.

I'd just like to check to make sure that I am correct. I feel zero desire to take our taxes some where else, pay more money for a "professional" to file them for us when I feel like numbers will be the exact same. My husband is confused as to why we owe, but it's pretty simple to me. He made a lot more in 2012 than he did in 2011, we do not qualify for certain credits because of his income being higher, and he didn't pay enough into federal throughout the year.  

Hmmmm I can see where your coming from but its probably worth it to take out to a tax preparer and see. Last year we took our taxes to hrblock and they couldn't get us any more then I could myself so we only paid them $30 and left (obviously without them filing for us). Wasnt that big of a loss.


Eta: also, my dad used to be a truck driver and saved NO receipts and he always would of payed in or got very little until he took his taxes to a preparer and litterally got back thousands more.

Quoting Momma Prime:" Hmmmm I can see where your coming from but its probably worth it to take out to a tax preparer and see. ... [snip!] ... more then I could myself so we only paid them $30 and left (obviously without them filing for us). Wasnt that big of a loss."

I'm just failing to see why. I mean, it seems extremely simple to me, but I'm just curious if there is something that I am missing. We rent and do not have any receipts for the gas, tools, boots, uniforms, hotels, or anything that DH has used or spent money on in 2012. We most likely will tax our taxes elsewhere, but I'd just like to know if there is something that I am missing. I'm not trying to come off rude, I'm just genuinely curious if there is something that I am missing.

Do you own a home? Mortage interest is not subject to any threshold over AGI. Meaning, dollar for dollar, what you paid, is calculated.

Do you contribute to charity? Tithe to a church? Also not subject to threshold requirements.

Do you have a state income tax in your state?

Medical bills, casualty losses, unreimbursed employer expenses...these are on the Schedule A (itemized deductions form) but are subject to being over a certain threshold.

Quoting Autumn Whisper:" Do you own a home? Mortage interest is not subject to any threshold over AGI. Meaning, dollar for dollar, ... [snip!] ... employer expenses...these are on the Schedule A (itemized deductions form) but are subject to being over a certain threshold."

We rent. The only amount I have contributed to charity is about $150 (clothes, not cash). We live in Texas, no state taxes. So none of that would help us.

The only thing that I could imagine that we would be able to use is gas expenses, hotel costs, uniforms, and tools. Which we do not have any receipts for those, so I'm not willing to use those since we do not have any receipts. I'm not okay with giving an estimate and being audited in the future.

I'm under the assumption that you can not tack on those deductions along with the standard $11,900 deduction (married filing jointly) so I don't see how using some random estimate of gas expenses is going to help us. The only time you should itemize is if you itemized deductions are higher than the standard, right? And you can only use the amount that is above the 2% of your income, right?

Quoting 624582:" We rent. The only amount I have contributed to charity is about $150 (clothes, not cash). We live in ... [snip!] ... deductions are higher than the standard, right? And you can only use the amount that is above the 2% of your income, right?"

You cannot tack on the itemized deductions with the standard, so you are correct, the only time you should itemize is if your itemized adds up to more than your standard deduction would be.

Now, what is relevant is AGI---adjusted gross income. There are things that can deduct from income before you get to the point of taking into account itemized deductions. The threshold is what percentage of AGI you have to be over, before your expenses matter. For medical, it is 7.5%. Unreimbursed employee expenses (job travel, licenses and fees, etc), tax prep fees, investment expenses, etc.) are subject to 2% threshold.

Casualty or theft losses have their own rules. Taxes paid (property tax, state income tax, state sales tax), interest paid (mortgage interest, points, qualified mortgage insurance premiums), and charitable contributions (tithing, cash or property donations) have no such threshold and are taken without having to be above a certain percentage of AGI.

Quoting Autumn Whisper:" You cannot tack on the itemized deductions with the standard, so you are correct, the only time you ... [snip!] ... cash or property donations) have no such threshold and are taken without having to be above a certain percentage of AGI."

And what affects your AGI is tuition fees and student loan interest? I know there is more, but I can't recall exactly what they are ATM.  I just know that we do not qualify for the deductions I saw on the 1040a form when I was attempting to understand all of this.

Quoting 624582:" And what affects your AGI is tuition fees and student loan interest? I know there is more, but I can't ... [snip!] ... I just know that we do not qualify for the deductions I saw on the 1040a form when I was attempting to understand all of this."

Well, tuition fees, unless you qualify for one of the education credits.
K-12 teacher expenses. Certain business expenses from certain professions, moving expenses, health savings account contributions, self-employment tax adjustment, stuff like that. Including alimony.

There are 12 things there. At least, there were for 2011, which is what I'm looking at because a 2012 wasn't handy.

Quoting Autumn Whisper:" Well, tuition fees, unless you qualify for one of the education credits. K-12 teacher expenses. Certain ... [snip!] ... alimony. There are 12 things there. At least, there were for 2011, which is what I'm looking at because a 2012 wasn't handy."

Thank you for taking the time to help me understand this. I'm really new to all of this since we have always taken the standard deduction. We will be taking our taxes to H&R Block or some where of the sort, mainly because I don't feel like arguing my points to DH again.

I just wanted to make sure I had my information straight and there wasn't something that I am missing. My husband just seems to think that a CPA is going to give us a different number than what I am getting and I don't see that happening since we do not have receipts for all of our expenses.

Thanks again for your help.  

Quoting 624582:" Thank you for taking the time to help me understand this. I'm really new to all of this since we have ... [snip!] ... getting and I don't see that happening since we do not have receipts for all of our expenses. Thanks again for your help.  "

Many people do see a benefit when going to a CPA, over going to H&R Block but especially over doing it themselves. But not everyone will. Be mindful that on a more complicated return, sometimes a CPA firm is actually cheaper than H&R Block.

At least going there will either get you a better return, or prove to your husband that you're doing just fine with your simple return. lol

Quoting Autumn Whisper:" Many people do see a benefit when going to a CPA, over going to H&R Block but especially over doing ... [snip!] ... there will either get you a better return, or prove to your husband that you're doing just fine with your simple return. lol"

Now that I've explained this to my husband we have agreed to find a CPA for next season since we're saving receipts this year in hopes that itemizing will be an option. I've been okay this far, but I have zero desire to attempt doing a more complicated form next year, lol.

Thanks again.