Tax Filing Season is upon us yet again. Most employees have already received their W-2s, the rest should get theirs before January 31st. As soon as you get your W-2, it's time to file your taxes.
This week, from January 18-22, I'm going to go over all the important Tax Forms and documents needed to file your Taxes. Today is part three, Itemized Deductions.
Common Itemized Deductions for 2009
Some purchases made during the year can be used to reduce the amount of income you're taxed on. You can itemize your deduction, which requires you to list each item, it's cost, and substantiation to prove you paid for the item- or you can use the IRS Standard Deduction Amount. Some Deductions must be itemized as a requirement, like Charitable Contributions. The most common Itemized Deductions include:
- Home mortgage interest
- Real estate taxes
- State and local income taxes
- State and local sales taxes
- Personal property taxes
- Charitable contributions
- Medical and dental expenses
- Tax preparation fees
- Investment interest
- Employee business expenses
- Casualty and theft losses
You can claim anything listed above as a deduction and list it as an itemized deduction. It's important to research any limitations before claiming a deduction, you might not qualify to claim it.
Final Tip: The total amount you can deduct begins to phase out if your adjusted gross income is more the $166,800 (or $83,4000 if you're married filing separately).