Itemized deductions are certain expenses that you can use to lower your taxes. The categories of itemized deductions are:
Each category of itemized expenses is explained below.
If you have questions on the deducibility of your itemized deductions, please use the personal tax assistance at 1-800-TAX-1040.
Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. They also include dental expenses.
Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Do not include expenses that are merely beneficial to general health, such as vitamins or a vacation.
Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract.
State and local taxes hat are deductible are either withheld taxes as shown on your W-2, estimated tax payments, or other tax payments made during the year. You can elect to deduct state and local general sales taxes instead of state and local income taxes. The election of state and local sales taxes is good if you reside in a state that does not have state and local income taxes. There are eight states that do not have a state income tax.
State and local taxes on real property, such as your house or land, are deductible when paid. Taxes that state and local governments charge on the value of personal property are also deductible. There are some taxes that are not deductible.
Interest is the amount that is paid in order to borrow money. While most mortgage interest payments are deductible there are some limitations.
The amount of your charitable contributions are deductible if made to certain organizations and if they are within certain limits.
A casualty occurs when property is damaged as a result of sudden, unexpected, or unusual event. If you had a casualty or theft loss, you may be able to deduct these expenses if they are over a certain amount. Theft is the unlawful taking and removing of money or property. Theft does not include the mere disappearance of money or property.
Certain job expenses that are not reimbursed by your employer are deductible.
Miscellaneous deductions are allowed if they are over a certain amount. Restrictions apply.
