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.

contact@officetaxservices.com

(858)247-1680

 

If you claim standard deduction...

If you claim standard deduction, you cannot itemized deductions. 

The standard and itemized deduction is a dollar amount that reduces your taxable income, but you cannot claim both. You should claim whichever one is higher. 

Certain taxpayers cannot use the standard deduction:

• A married individual filing as married filing separately whose spouse itemizes deductions.
• An individual who files a tax return for a period of less than 12 months because of a change in his or her annual accounting period.
• An individual who was a nonresident alien or a dual-status alien during the year. Nonresident aliens who are married to a U.S. citizen or resident alien at the end of the year and who choose to be treated as U.S. residents for tax purposes can take the standard deduction. 
• An estate or trust, common trust fund, or partnership; 

Itemized deductions include amounts you paid for state and local income or sales taxes, real estate taxes, personal property taxes, mortgage interest, and disaster losses. You may also include gifts to charity and part of the amount you paid for medical and dental expenses. You would usually benefit by itemizing on Form 1040, Schedule A, if you:

• Cannot use the standard deduction
• Had large uninsured medical and dental expenses
• Paid interest or taxes on your home
• Had large unreimbursed employee business expenses
• Had large uninsured casualty or theft losses, or
• Made large charitable contributions

Your itemized deductions may be limited and your total itemized deductions may be phased out (reduced) if your adjusted gross income for 2015 exceeds the following threshold amounts for your filing status.

If you have any questions, send us a message or leave a comment. We will be more than happy to help you.

 

contact@officetaxservices.com

(858)247-1680