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Topic: Itemized deduction

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	Income Tax Deductions - House Research
		For tax year 2006, the income thresholds at which deductions begin to be limited are $150,500 for married joint, head of household, and single filers, and $75,250 for married separate filers.
		If itemized deductions remaining after subtracting the state income or sales tax deduction total less than the standard deduction allowed at the state level, taxpayers are allowed the standard deduction.
		Dependents with wage income may claim a standard deduction equal to the amount of their wage income plus $250, up to the standard deduction for single filers ($5,150 in tax year 2006), if this amount is greater than the $850 minimum standard deduction.
	www.house.leg.state.mn.us /hrd/issinfo/txdeducs.htm (649 words)

	Itemized Deduction and Standard Deduction, IRS and Tax
		You deduct itemized deductions by listing on Form 1040, Schedule A all tax deductible amounts you paid during the tax year for certain items such as medical and dental expenses, state income tax, local income tax, real estate tax, state personal property tax, local personal property tax, home mortgage interest, and gifts to charity.
		The larger of the two tax deductions, standard deduction or itemized deduction, will be the tax deduction to choose on your tax return, since it will lower the amount of federal income tax you will owe or increase the amount of tax refund you will receive.
		To deduct interest you paid on a debt on your tax return you must be legally liable for the debt and you must be able to use itemized deductions.
	www.wwwebtax.com /deductions_z_other/itemized_deductions.htm (981 words)

	Tax Analysts: Economic Perspective: 97 TNT 81-63 (Copyright, 1997, Tax Analysts)
		The proposal to convert itemized deductions to credits at a single rate of 15 percent would treat most or all of these items as expenses to be subsidized at the same rate.
		Elimination of the itemized deduction for home mortgage interest still leaves nontaxable the return generated by equity owners; it merely penalizes the homeowner who is required to borrow -- and in proportion to the amount of the borrowing, not the amount of the income that avoids taxation.
		As such, they are appropriate to take as deductions, whether on the itemized deduction schedule, or, for some taxpayers, on forms for reporting income from self-employment or partnerships.
	www.taxanalysts.com /www/econpers.nsf/cfa3e4167d7590dc852566db00614d4d/8de00340c8091c00852566da006d2b88 (1769 words)

	Publication 17, Your Federal Income Tax; Chapter 13 - Other Income, Recoveries (Site not responding. Last check: 2007-10-09)
		Your standard deduction was $7200, and you had itemized deductions of $9,000.
		Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions).
		In 2000 you recover $2,400 of your 1999 itemized deductions.
	www.pfb.com /MSCdownload/publications/p171306.htm (970 words)

	Department of Revenue: Personal Income Tax Sales Tax Deduction
		Individuals who claim sales tax as an itemized deduction on their federal return in 2005 and later must reduce their itemized deductions on the Oregon return for the sales tax deduction claimed.
		As an itemized deduction, they claim $3,500 of Washington sales taxes paid on the purchase of a boat they keep at their Washington lake house.
		Their total itemized deductions are limited to $20,831 based on the federal itemized deductions worksheet.
	www.oregon.gov /DOR/PERTAX/sales_tax_deduction.shtml (548 words)

	Tax Analysts: Economic Perspective: 2000 TNT 54-105 (Copyright, 2000, Tax Analysts)
		Below-the-line deductions are combined in the itemized deduction schedule to reach "taxable income," the final income on which tax is assessed before the allowance of credits (personal exemptions also are subtracted after the calculation of AGI).
		The rationale is usually that such deductions should be treated similarly to exclusions already in the law, such as for employer-provided pension contributions that also are not counted immediately in the taxpayer's income or AGI.
		If it were placed "above the line" -- that is, where most deductions not reported on the itemized deduction schedule are taken -- then a deduction of $1 of charitable contributions would reduce AGI by $1, which would reduce taxable income by $1.03 for a person subject to the itemized deduction phaseout.
	www.taxanalysts.com /www/econpers.nsf/cfa3e4167d7590dc852566db00614d4d/27d04b69e01b38eb85256c210076f384 (1191 words)

	Fool.com: Itemized Deduction Limits [Tax Q&A] December 22, 2000
		Itemized deductions are a method by which you can pay for qualified medical, taxes, interest, charitable, and other miscellaneous expenses, and receive a tax deduction.
		There is a section in the tax code that limits the amount of itemized deductions allowed to certain "high-income" taxpayers.
		This is the ALLOWABLE amount of all of Carole's itemized deductions for 2000.
	www.fool.com /taxes/2000/taxes001222.htm (1082 words)

	FAQs on Itemized Deductions (Site not responding. Last check: 2007-10-09)
		For example, your miscellaneous itemized deductions must be greater than 2% of your adjusted gross income before you get a tax benefit for any of those expenses.
		You can deduct any expense you pay for the prevention, diagnosis, or medical treatment of physical or mental illness, and any amounts you pay to treat or modify any structure or function of the body for health (but not for cosmetic purposes).
		You can also deduct the cost of transportation to the locations where you can receive this kind of medical care, your health insurance premiums, and your costs for prescription drugs and insulin.
	www.turbotax.com /articles/FAQonItemizedDeductions.html (1205 words)

	Fool.com: Tax Savings on Your Home Purchase [Tax Q&A] July 27, 2001
		They have never itemized their deductions in the past, and are looking forward to that big home mortgage deduction, their property tax deduction, and the ability to complete their Schedule A Itemized Deduction form the very next time they file their tax return.
		Remember that itemized deductions are applied against your adjusted gross income (AGI), thereby allowing you to arrive at a lower taxable income, and thus a lower income tax (yippee!).
		You basically compare your itemized deductions to your standard deduction, and use the larger of the two results to reduce your taxable income.
	www.fool.com /taxes/2001/taxes010727.htm (1225 words)

	Frequently Asked Questions - 3. Itemized Deductions/Standard Deductions
		You may deduct home equity debt interest, as an itemized deduction, if you are legally liable to pay the interest, pay the interest in the tax year, secure the debt with your home, and do not exceed certain limitations.
		However, if you have a deductible loss from a disaster in an area that is officially designated by the President of the United States as eligible for federal disaster assistance, you can choose to deduct that loss on your return for the year immediately preceding the loss year.
		You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your spouse.
	www.irs.gov /faqs/faq3.html (2553 words)

	Colorado - State Income Tax Deduction Addback for High Income Taxpayers
		If the addback of the state tax deduction reduces your allowable itemized deductions to an amount that is less than what your appropriate standard deduction (single, head-of-household, married filing jointly, married filing separately) would have been, you are allowed the benefit of the federal standard deduction.
		Your state tax deduction addback should be the smaller of 1) the state tax deduction allowed for federal income tax purposes, or 2) the amount by which the total allowable federal itemized deductions exceed what would otherwise be allowable as a standard deduction.
		The amount on line 10 of the federal itemized deductions worksheet is the amount to enter on line (b) of the schedule.
	www.revenue.state.co.us /fyi/html/income03.html (1035 words)

	Tax Tip: standard vs. itemized deductions.
		There also are restrictions on how much in casualty losses you can deduct, as well as limits on the deductibility of very large charitable contribution amounts.
		Second, your overall itemized deduction amount for 2004 may be reduced if you make more than $142,700.
		Standard deductions are discussed in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.
	www.bankrate.com /brm/itax/tips/20010220a.asp (676 words)

	Itemized deduction -- Facts, Info, and Encyclopedia article (Site not responding. Last check: 2007-10-09)
		Alternately, they can elect to subtract the (Click link for more info and facts about standard deduction) standard deduction for their filing status (and any applicable personal exemptions) to arrive at their taxable income.
		If the total (Click link for more info and facts about itemized deduction) itemized deductions and the (Click link for more info and facts about standard deduction) standard deduction are very close in value, whether the taxpayer would prefer to take the standard deduction to reduce the risk of change upon IRS audit.
		Whether the taxpayer is otherwise eligible to file a shorter tax form (like the 1040EZ or 1040A) and would prefer not to prepare (or pay to have prepared) the more complicated 1040 form and the associated Schedule A for (Click link for more info and facts about itemized deduction) itemized deductions.
	www.absoluteastronomy.com /encyclopedia/i/it/itemized_deduction.htm (867 words)

	Got \| Apex? Forums - Mortgage Interest: Std. Deduction vs Itemized Deduction
		I recently bought a condo and trying to figure out if my standard deduction would be higher or my itemized deduction would be higher because of the interest I'm paying on the condo.
		Child care expenses and charitable contributions really add to your itemized deductions (So be sure to give away your crap and claim the deductions before 12/31 and claim the money you give to your church/religious organization as well).
		Contributions to regular IRAs are deductable (up to specified limits depending on income) and you can have both a regular IRA (deductable) and a Roth IRA (not deductable- you pay taxes on the money now but none when money including interest when you are retired).
	www.gotapex.com /forums/printthread.php?t=80507 (742 words)

	Iowa Department of Revenue 1040 Instructions 2004
		Enter the total amount of itemized deductions claimed on your Federal or Iowa Schedule A. To complete either the Federal or Iowa Schedule A, refer to the Federal 1040 instruction booklet.
		It may be to your advantage to take this deduction on line 18 instead of Schedule A. Schedule A may not contain any health insurance premiums which were used as a deduction on line 18.
		If you itemize deductions, a portion of the automobile or multipurpose vehicle registration fee you paid in 2004 may be deducted as personal property tax on your Iowa Schedule A and Federal Schedule A, line 7.
	www.state.ia.us /tax/1040EI/Line/04Line37.html (935 words)

	Iowa Department of Revenue 1040 Instructions 2004
		For Iowa purposes, the itemized deduction for state sales and use tax paid is used only if a taxpayer claimed an itemized deduction for state sales and use tax on the federal return.
		For Iowa purposes, the itemized deduction for state sales and use tax paid is allowed only if the taxpayer claimed an itemized deduction for state sales and use tax paid on the federal return.
		In addition, if taxpayer claims the itemized deduction for state sales and use tax paid on the federal return, taxpayer cannot claim an itemized deduction for the school district surtax and EMS surtax on the Iowa return.
	www.state.ia.us /tax/1040EI/GenInfo/04WhatsNew.html (808 words)

	Unlocking the Benefits of the Tax Benefit Rule
		Although the net result may be the same—no income and a $4,000 itemized deduction vs. $3,000 of income and a $7,000 itemized deduction—it could affect the various AGI limitations on itemized deductions.
		Recalculating the 2000 tax by reducing the itemized deduction for state income taxes by this amount indicates that the tax is not reduced (because regular tax equals AMT).
		The result is that instead of no taxable refund and a $100,000 Schedule A deduction in year 2 (had the taxpayer made an estimated tax payment for year 2 rather than an extension payment for year 1), the taxpayer has a $50,000 taxable refund and a $150,000 Schedule A deduction, as well as additional taxes.
	www.nysscpa.org /cpajournal/2004/104/text/p36.htm (2495 words)

	CCH Financial Planning Toolkit \| Refunds of Previously Deducted Items
		If your deduction for the item was less than the amount you recovered, you only have to report a taxable recovery for the amount that you had actually deducted.
		Taxpayers who itemized their deductions for the year to which the recovery applies, but had their deductions limited because they were high-income taxpayers, must go through some special calculations to determine how much of the recovery they must report.
		Basically, this involves determining how much of a deduction they would have been able to claim for the item if it were reported accurately, as compared to the amount they actually were able to claim for the item, taking the limitation into account.
	www.finance.cch.com /text/c60s10d153.asp (566 words)

	Itemized Deduction, IRS and Tax
		Itemized deductions that otherwise would have been allowed on your tax return (excluding medical expenses, casualty and theft losses, and investment interest expense) are reduced by 3% of the amount by which your AGI, including capital gains, exceeds $142,700 in 2004.
		So, if you have an AGI of $342,700 which is $200,000 over the itemized deduction reduction threshold in 2004 and itemized deductions of $55,000, your itemized deductions are reduced by $6,000 (3% of $200,000) to $49,000 on your tax return.
		The disallowance of itemized deductions is applied after taking into account other limitations, such as the 2% floor for miscellaneous itemized deductions on your tax return.
	www.wwwebtax.com /deductions_z_other/itemized_deductions_limits.htm (382 words)

	State income tax addition
		Because their itemized deductions exceed their standard deduction of $9700 by only $200, they are required to add back only the $200 of the $2000 state tax deduction.
		Taxpayers whose itemized deductions are limited because of their greater adjusted gross income must use the full state income tax deduction for the worksheet calculation.
		Minnesota considers the state income tax deduction as the last itemized deduction disallowed when figuring which itemized deductions were eliminated for the reduction.
	www.taxes.state.mn.us /taxes/individ/credits_subtractions_additions/additions/state_inc_tax_addition.shtml (458 words)

	RealEstateJournal \| A Tax-Break Tutorial For New Homeowners
		While the cost of renting is generally a nondeductible expense (except for when part of the home is used for business purposes), homeowners can claim an itemized deduction for interest on up to $1 million worth of mortgage debt used to acquire or improve their principal residence.
		When your itemized deductions are less than the standard deduction, you simply forgo itemizing and claim the standard allowance instead.
		In fact, itemized deductions for some high earners are curtailed to the extent they wind up back in the standard-deduction mode.
	homes.wsj.com /buysell/taxesandinsurance/20030610-smartmoney.html (1112 words)

	Itemized Deduction Differences (Site not responding. Last check: 2007-10-09)
		Alabama income taxes paid are deductible as an itemized deduction on the Federal return; but are not deducted on the Alabama form.
		On the other hand, Alabama does allow a deduction (not as an itemized deduction, but separately) for the Federal income tax liability on that year's Federal return.
		Her 2004 deduction on Alabama Schedule A for SE taxes paid will be $200 (the amount on the 2003 return).
	www.alabamatax.net /alafeddeductions.htm (459 words)

	Tax Policy Center \| Publications
		If it were placed "above the line"—that is, where most deductions not reported on the itemized deduction schedule are taken—then a deduction of $1 of charitable contributions would reduce AGI by $1, which would reduce taxable income by $1.03 for a person subject to the itemized deduction phaseout.
		Recall that the itemized deduction phase-out counts an additional $1 of AGI as $1.03 of taxable income for most taxpayers subject to its provisions.
		Allowing a single deduction for itemizers and nonitemizers alike to reduce AGI could have significantly increased charitable incentives.
	www.taxpolicycenter.org /publications/template.cfm?PubID=7864 (1158 words)

	J.K. Lasser::Itemized Deduction for Interest Expenses (Site not responding. Last check: 2007-10-09)
		When you refinance a mortgage on a first or second home for the same amount as the remaining principal balance on the old loan, there is no change in the tax treatment of the interest.
		In other words, if interest was fully deductible on the old loan, then it is fully deductible on the new loan.
		If you refinance a home mortgage for more than the existing balance, the deductibility of interest on the excess amount depends upon how you use the funds and the amount of refinancing.
	www.wiley.com /WileyCDA/Section/id-103350.html (689 words)

	Itemizing on your Tax Return
		Certain taxpayers must itemize, even if their deductions are less than the standard deduction.
		The amount you can deduct is based on different limits, depending on the type of itemized deduction.
		As a general rule, you can deduct any expense you pay for the prevention, diagnosis, or medical treatment of physical or mental illness, and any amounts you pay to treat or modify any structure or function of the body for health purposes (but not for cosmetic reasons).
	www.quicken.com /cms/viewers/article/taxes/4538 (1025 words)

	I7-36 AGI $30,000
		I7-42 The refund of state income taxes deducted in a prior year must be taken into income in the year of the refund to the extent the taxpayer received a tax benefit from the prior deduction.
		However, if the loan (principal and interest) is actually repaid in the current year, King Corporation should be entitled to a deduction for the interest in the current year because the JR Partnership must report the interest income in the year of receipt.
		The amount of the charitable contribution deduction would be $40,000 for this year (50% of AGI limit is $50,000).
	www.fsu.edu /~accdept/Tax1Ch7.html (1550 words)

	Tax tip: bunching itemized deductions
		If your out-of-pocket expenses for the eye exam and new glasses exceed $250, you'll be able to claim the excess as a medical deduction.
		And if this whole deduction process is just too taxing for you and you pay a professional to figure it out, here's a final itemizing gift from the IRS.
		Fees paid to tax preparers also are deductible as a miscellaneous expense.
	www.bankrate.com /brm/itax/tips/20010312a.asp (542 words)

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