The IRS Deductions Blog

Archive for the ‘Itemized Deductions’ Category

Question: Can I change my state tax return to standard deduction from itemized even though I didnt change my federal?

I am being audit for state tax and they are requesting my doc and receipts for my Itemized Deductions…I did not keep anything…can I just take the standard for my state instead of itemized like i did for my federal. This is for NC state return

Answer: If you change your state return, the NC Department of Revenue will notify the IRS about the changes.

Your best bet is to go back to the charities, etc. and ask for duplicate receipts. If you paid by check or credit card, go through your bank records.

It is unusual for NC to audit your itemized deductions without anything from the IRS first.

Suggestions for the future:

1. Keep all receipts in a box or envelope.

2. Get a scanner and scan the important documents. Use an on-line service (Mozy at Home, SugarSync, etc.) to keep copies in case of a hard drive crash.

Many taxpayers itemize their deductions on their federal return but take the standard deduction on their state tax returns because after subtracting off their state income taxes, their deductions are below the standard deduction for the state.

I hope this helps.
Gary

Items on Amazon Right Now for Tax Itemized Deductions:

CPAs year-end tax-savings tips

The Queens/Brooklyn Chapter of the New York State Society of Certified Public Accountants (NYSSCPA) recommends these Year-end Tax Tips for consumers:

Tax Tuesday – Itemized deductions

Items on Amazon Right Now for Itemized Deduction Worksheet 2009:

2010 tax law changes offer expanded tax benefits

Taxpayers, nationwide, will have until Monday, April 18, 2011, to file their 2010 returns and pay any taxes due.

Future limitations on tax rates for Itemized Deductions

Question: Definition of mail in a formal, legal setting?

Hi,

I have a bit of a dispute with my former landlord, and the law states that landlord must MAIL or PHYSICALLY DELIVER itemized statement for deduction made from safety deposit, but he e-mailed it instead. I am not happy with the content of the statement either. Does e-mail still count as mail in a legal setting such as this?
Thank you.

Answer: Yes it does.~!

Items on Amazon Right Now for Itemized Deduction Definition:

Even Bush’s Economic Advisers Thought The Tax Cut Was A Terrible Idea

Republicans are heavily invested in permanently extending the tax cuts enacted during the George W. Bush administration, all of which expire at the end of this year exactly as the legislation was written in the first place.

Passionate Giving Giving Time and Treasure with Purpose!

Question: I’m having troubles with turbotax 2009?

I have used turbotax for three years now, and loved it. This year, it’s much less user friendly. I can’t “live chat”, and I have some questions. It’s not allowing me to do “standard” deductions for medical expenses. It’s not allowing me to itemize work expenses, gas, etc. Most importantly, it’s not allowing me to enter my rent…which has doubled since last year. Also, I’m nervous, bc my divorce papers say my ex is supposed to claim my son until he’s “emancipated”, and I’m supposed to claim my daughter. However, my son has not seen my ex in a year and a half. so it seems to me I should claim both. What happens if he claims my son, even though he hasn’t seen him in so long, and so do I? What happens ifwe both claim one of the children?

Answer: There is no “standard deduction for medical expenses” or rent or work expenses. You itemize or take standard deduction. Pick one. General rule (works 90% of the time): If you aren’t buying a house, you take standard deduction.

IRS could care less about your divorce agreement. The parent who provides the majority of the child’s support is entitled to the exemption. If two people claim the same child, the one whose return is processed first will sail through then IRS will sort out who is really entitled to it. This question shows up regularily in Tax Court and the custodial parent almost always wins the fight.

Items on Amazon Right Now for Itemized Deduction Medical Expenses:

Saving on Taxes in a Lousy Economy (The Tax Guy)

The upside of the gloom? Some valuable tax breaks.

Baucus Bill Insurance Mandate: Tax on Sick to pay for Healthy

Question: Help on Schedule A – Itemized Deduction?

How do I get the value to put on Federal Schedule A – Itemized Deduction under taxes You Paid , Line 5 – State and Local Income Taxes? Where can I get the numbers to put there? Is it on my W2 Form? If yes, which boxes in W2 I need to add?
Thanks, I checked on PUBLICATION 17… it says add box 14 17 19. Thanks for confirming this!

Answer: That amount is found on your W-2 under “state income tax” (box 17). If you have local taxes as well (box 19), you add them to your state taxes to get a total.

Items on Amazon Right Now for Federal Income Tax Itemized Deductions:

IRS rule change may mean refund

Recently, in a surprise move, the IRS reversed its position regarding the tax reporting of community property income by registered domestic partners.

TaxPlus – Tax Information By Subject