Tuesday, July 26, 2016

When You Should Use Schedule A?


You should use schedule A when itemized deductions exceed the amount of the standard deduction, you attache Schedule A to form 1040 in order to claim the higher amount.

If you itemize, you can deduct a part of your medical and dental expenses and unreimbursed employee business expenses, and amounts you paid for certain taxes, interest, contributions, and miscellaneous expenses. You can also deduct certain casualty and theft losses. 

Taxes You Can't Deduct 
  • Federal income and most excise taxes. 
  • Social security, Medicare, federal unemployment (FUTA), and railroad retirement (RRTA) taxes. 
  • Customs duties. 
  • Federal estate and gift taxes. 
  • Certain state and local taxes, including: tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (marriage, driver's, dog, etc.).
If you and your spouse paid expenses jointly and are filing separate returns for 2015, see Pub. 504 to figure the portion of joint expenses that you can claim as itemized deductions.

If you have Adjusted Gross Income above $154,950, your itemized deduction may be reduced.




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