Certain expenditures qualify as a deduction for your taxes.
These expenditures are referred to as itemized deductions.
In general, if your total itemized deductions exceed the
standard deduction, you should itemize. This includes these
situations:
-
You do not qualify for the standard
deduction, or the amount of the standard deduction is
limited
-
You have large, uninsured medical
and dental expenses
-
You pay interest and taxes on a home
or personal property
-
You have large, unreimbursed employee
business expenses
-
You have large, uninsured casualty
or theft losses
-
You make large contributions to qualified
charities
Most deductions are subject to the 2% of adjusted gross
income (AGI) rule. This means the sum of expenditures greater
than 2% of your total AGI are deductible in the amount that
exceeds the 2%. Medical and dental expenses that are greater
than 7.5% of your total AGI are deductible in the amount
that exceeds the 7.5%.
Qualifying Expenditures
-
Medical and dental expenses
-
State and local income taxes or sales
tax
-
Real estate and personal property
taxes
-
Home mortgage and investment interest
-
Home mortgage points
-
Charitable contributions
-
Casualty and theft losses
-
Job expenses
-
Miscellaneous deductions
Individuals Who Must Itemize
-
A married person whose filing status
is married filing separately and whose spouse is itemizing
deductions.
-
An individual who is a nonresident
alien or dual-status alien during any part of the current
tax year. Dual status occurs when you are considered both
a nonresident and resident alien during the same year.
-
An individual who changes his or her
annual accounting cycle and is filing a return for a period
of less than 12 months.
Income Limits for Itemizing Deductions
Certain itemized deductions are limited if the 2009 adjusted
gross income exceeds $166,800 for married filing jointly,
or $83,400 for married filing separately. Tax year 2009
is the last year for AGI limits on itemized deductions.
For more information, see IRS
Instructions for Schedule A.
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> Itemized Deductions
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