Should I itemize deductions even if I don't need to?

My itemized deductions are greater than the standard deduction.

But my taxes are zero even if I take the standard deduction.

Are there reasons why I should itemize, anyway?

For example, if the IRS sends a letter of correction later, can I switch to itemized deductions then, if it works in my favor?

I have the impression that the time for me to file an amended return is less the time the IRS has to send letters of correction, even when fraud is not a concern.

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Similarly, if I choose to itemize deductions now, my taxes are zero even if I omit some deductions.

And there is some advantage if I do. For example, I can eFile if I omit investment advisory fees [1].

Are there reasons why I should include all possible itemized deductions now, anyway?

For example, if the IRS sends a letter of correction later, can I add itemized deductions then, if it works in my favor?

----- [1] If I deduct investment advisory fees that cover both tax-exempt and taxable income, I "must attach a statement to your return showing how you divided the expenses", according to IRS Pub 550. But Form 8453 states: "If you are required to mail in any documentation not listed on Form 8453, you cannot file the tax return electronically".

Reply to
dreamer00408
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Itemizing can give you an advantage on the state return in some cases.

Reply to
PB

Calif permits us to itemize on the state return even if we take the standard deduction on the federal return.

But that's not related to my question.

The crux of my question is two-fold, considering __only__ the federal return for individuals (MFJ).

  1. Can I switch from the standard deduction to itemized deductions after the IRS sends a letter of correction (assuming such a switch works in my favor, of course)?
  2. Can I add itemized deductions after the IRS sends a letter of correction?
Reply to
dreamer00408

I think you're always allowed to amend a return (within the time limit), and you can change your deductions when amending. I doubt that the fact that you've received a LOC changes that ability.

Reply to
Barry Margolin

The standard deduction is a nonbinding election. You can switch from the standard to itemized deductions at any time.

Reply to
adjunct

Thanks for that reassurance. I know you are a l> I doubt that the fact that you've received a LOC changes that ability.

Didn't I read "recently" that the IRS now has longer to review returns? But that did not extend our time to amend returns?

Having said that, I must admit that it does not make sense. I believe we respond to a LOC by filing a 1040X, right?

Perhaps I'm just confusing a couple of vague (read: "unreliable") recollections. Difficult for me to confirm or deny by my own research of online information. That's why I'm seeking inputs from knowlegdeable people like you.

Thanks.

Reply to
dreamer00408

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