Itemized Deductions
What deductions am I entitled to take?
You may take deductions for 1) medical and dental expenses, 2) paid state and local income taxes or state and local general sales taxes, 3) real estate taxes, 4) new motor vehicle taxes, 5) home mortgage interest, 6) personal property taxes, 7) income tax you paid to a foreign country or U.S. possession, 8 ) points not reported on form 1098, 9) mortgage insurance premiums, 10) investment interest, 11) gifts to charity, 12) casualty and theft losses, 13) unreimbursed employee expenses, 14) other expenses (certain legal and accounting fees, custodial fees, office rent, etc.) and 15) tax preparation fees.
When should I itemize versus take the standard deduction?
Depending on your filing status, your standard deduction may be higher or lower than the itemized deductions. If you do not have a lot of itemized deductions, then you will want to take the standard deduction. The standard deduction amounts are as follows:
- Single or married filing separately – $5,700
- Married filing jointly or Qualifying widow(er) – $11,400
- Head of household – $8,400
- Dependents who are also filing – greater of $950 or earned income plus $300
If your deductions are more than the above amount for your filing status, then you should complete a Schedule A and include the total amount of itemized deductions.