Should you Itemize or Use the Standard Tax Deduction?

The tax filing deadline of April 15th may be a long ways off, but the end of the tax year is rapidly approaching. We're just over 60 days left in the 2008 tax year, so any late tax preparation should be made now. One of the common questions many people have is whether or not it's worth it to itemize deductions or just take the standard deduction. Sure, itemizing takes a little more work since you have to keep track of individual expenses, but if those expenses total more than the standard deduction, you could save quite a bit of money.

For 2008, the standard deduction for the most common types of filers are as follows:

• Single: $5,450
• Head of Household: $8,000
• Married Filing Joint: $10,900
• Married Filing Separately: $5,450
• Qualifying Widow/Widower: $10,900

So, if you think that you could itemize and go beyond the standard deduction limit for your filing status, it would certainly be worth the time and effort to itemize your deductions.