Here’s a quick checklist that can help you decide if it is better to itemize, or take the standard deduction on Schedule A of your 2014 tax return:
If these deductions total more than your standard deduction, it will be more beneficial to itemize rather than to use the standard deductions. Some of the expenses that can be itemized on your tax return are:
- Medical and Dental expenses greater than 10% of your adjusted gross income (AGI). If the taxpayer, or spouse, is age 65 or older by year end, he or she may still deduct medical expenses greater than 7.5% of AGI.
- Taxes paid in 2014 including State and Local income taxes, real estate taxes and personal property taxes. You may deduct sales tax paid if it is more than your state and local income taxes.
- Home mortgage interest and mortgage insurance premiums.
- Charitable contributions up to 50% of your AGI.
- Non-business casualty and theft losses.
- Automobile expenses and other employee business expenses over 2% of your adjusted gross income.
- Gambling losses up to the amount of gambling winnings.
- Other miscellaneous expenses not subject to the 2% limit.
Our professional staff will help you understand the best way to handle your deductions to get the largest refund possible. Make your appointment early and avoid the rush! Call Tax & Accounting Plus today at 309-827-4010.
This information is not intended to be a substitute for legal, accounting, investment or other professional services. Always contact a professional to resolve your specific questions.
