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 tax return:
The following is a general list of items that can be deducted on the Schedule A of your 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 may still deduct medical expenses greater than 7.5% of AGI.
- Taxes paid in 2016 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 Ins. Premiums.
- Charitable Contributions up to 50% of your AGI.
- Nonbusiness 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 misc. expenses not subject to the 2% limit.
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.
