Question: Maximizing Itemized Deductions" Please respond to the following:
After reviewing the scenario, recommend at least two (2) tax-planning strategies that taxpayers could implement in order to ensure that the itemized deductions exceed their standard deductions, including those deductions that do not require itemization in order to reduce tax liability. Provide support for your recommendation.
Identify at least two (2) deductions that impact the amount of the itemized deduction claimed, and suggest at least two (2) tax-planning strategies for maximizing such deductions. Provide specific recommendations
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In the current time, different tax planning strategies and methods are used by the taxpayers in the different situations or conditions. In the same way, there are a wide range of tax-planning strategies that taxpayers could implement keeping in mind the end goal to guarantee that the itemized deductions surpass their standard deductions, including those deductions that don't require organization with a specific end goal to decrease tax liability. For instance, the citizen can exploit employer’s Section 125 cafeteria arrangement, 401(k) arrangement,health reimbursement arrangement (HRA), or health savings account (HSA). These are the plan that can help an individual taxpayer in the situation when the itemized deductions exceed their standard deductions.