Should we itemize our taxes this year or take the standard deduction?

Taxes Discussions Forum
1

Hey everyone, just bought a home for $680K. Mortgage interest, insurance premiums, state taxes (10K), and property taxes add up to 61,051 for 2025.

Got a couple of questions:

  1. Does this mean we should itemize instead of taking the standard deduction? Can this full amount be deducted from state taxes in GA?

  2. To avoid getting a huge tax refund next year, what should I change on my W-4 now?

Appreciate any insights.

2

Your tax software will figure this out. You just enter your expenses, and it calculates if itemizing saves you more than the standard deduction.

3

Aeron said:
Your tax software will figure this out. You just enter your expenses, and it calculates if itemizing saves you more than the standard deduction.

Yeah, I realized that after checking. I’m using a calculator on TurboTax now. Thanks for the help.

4

@Scarlett
You might save some money by skipping TurboTax and using Freetaxusa instead.

5

Jayden said:
@Scarlett
You might save some money by skipping TurboTax and using Freetaxusa instead.

I actually use that for filing. Just needed something quick for estimates.

6

If your deductions are above the standard deduction, itemizing makes sense. Mortgage interest and property taxes can help push you over the threshold.

7

State and local taxes (SALT) deductions are capped at $10,000. That includes property and state income taxes, but insurance premiums don’t count.

8

Maybe. You can only deduct up to 10K for state and property taxes combined. Mortgage interest is deductible, but insurance isn’t. Are you filing jointly? The tax software will sort it out for you.