Not an expert... by any stretch... but I've been doing my own taxes including 2 small businesses for years. Since I started working.
SO... in a nutshell... if your itemizations are larger than the standard deduction, then itemize - however - they need to be SUBSTANTIALLY more than the standard to actually save you money.
As for dependents... they have to meet qualifications.
Me? I'm itemizing, but no dependents - married filing separate due to husband's business mess.
FROM:
http://taxes.about.com/od/2009taxes/qt/quicktaxfacts09.htm
Standard Deductions
Single:
$5,700
Head of Household:
$8,350
Married Filing Joint:
$11,400
Married Filing Separately:
$5,700
Qualifying Widow/Widower:
$11,400
Dependent:
$950-$5,700*
Additional Amount if Blind:
$1,100 (for married filing joint, married filing separately, or qualifying widow);
$1,400 (for single and head of household)
Additional Amount if age 65 or older:
$1,100 (for married filing joint, married filing separately, or qualifying widow);
$1,400 (for single and head of household).
More information about the
standard deduction.
* Dependents must calculate their standard deduction using an IRS Worksheet.
Personal Exemptions
Per taxpayer and dependent:
$3,650
More information about
personal exemptions.
Phaseout of Personal Exemptions
The amount you can claim for personal exemptions starts to be reduced (or "phased out") once you reach certain income thresholds. If your income is within these ranges, your personal exemptions will be reduced. If your income exceeds the amounts listed below, your personal exemption is $2,433.
Single:
$166,800 - $289,300
Head of Household:
$208,500 - $331,000
Married Filing Joint:
$250,200 - $372,700
Married Filing Separately:
$125,100 - $186,350
Qualifying Widow/Widower:
$250,200 - $372,700
More information about the
personal exemptions.
