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Denver Tax Lawyer Video on Schedule A and Itemized Deductions

When you file your 1040 Individual Income Tax return, if you itemize your deductions, you file a Schedule A with your income tax return.  Generally, you will itemize your deductions if these deductions are greater than the standard deduction allowed.  Examples of itemized deductions would include: mortgage interest, real estate taxes, medical expenses (subject to 7.5% of your adjusted gross income), state income taxes withheld, charitable contributions and un-reimbursed employee expenses.

Taking these deductions will lower your taxable income and thus federal income tax.  It is also important to note that at certain income levels, these itemized deductions are phased out, meaning that you may only be able to take a certain portion of the total itemized deductions.

You can discuss your tax questions and matters with a Denver tax lawyer at The McGuire Law Firm.  A free consultation is offered to all potential clients.  Hopefully, the video below provides some additional information regarding the Schedule A and itemized deductions!

Itemized Versus Standard Deductions by Denver Tax Lawyer

Will I itemize my deductions or will I take the standard deduction?  This is a common question an individual may ask their tax attorney or their CPA Denver Tax Attorney IRS Offer In Compromisewhen preparing and filing their 1040 individual income tax return.  The article below, drafted by a Denver tax attorney at The McGuire Law Firm discusses how to make the decision to itemize or take the standard deduction, and what you need to do if you itemize your deductions.

Of course, you likely want to make the decision that allows you to pay the least amount in tax.  Thus, the option with the largest deduction is likely to lead to you paying the least amount of tax.  You may want to add up all of your itemized deductions and then see if these amounts will be larger than the standard deduction for the appropriate tax year.

Examples of itemized deductions are:

–          State and local income tax or sales tax, but you cannot claim both income taxes and sales tax

–          Mortgage interest, which is likely reported on From 1098

–          Real estate taxes

–          Charitable gifts via cash, check or other

–          Casualty or theft losses

–          Unreimbursed medical expenses (this deduction is limited based upon your adjusted gross income)

–          Unreimbursed employee expenses

Once you have listed all of the allowable itemized deductions, if they are larger than the standard deduction you will likely want to itemize your deductions.  You will itemize your deductions by filing Schedule A with your 1040 Individual Income Tax Return.

Because you will be comparing your itemized deductions to the current year standard deduction, it is important to know what the standard deduction is for the current year.  The standard deduction can change depending upon your filing status.  The standard deduction amounts for the 2013 tax year are as follows:

 

–          Single $6,100

–          Married Filing Joint $12,200

–          Head of Household $8,950

–          Married Filing Separate $6,100

–          Qualifying Widow(er) $12,200

There are also other issues to consider when deciding whether to itemize or take the standard deduction.  For example, if filing married filing separately, both spouses must be able to itemize their deductions or neither is allowed to itemize their deductions.  Thus, if one spouse itemizes and the other spouse takes the standard deduction, the Internal Revenue Service is likely to disallow the itemized deductions from one spouse, and this will likely result in an increase in tax, and additional tax assessment.  Further, itemized deductions can be phased out when individuals reach certain income levels, meaning that the amount of your deductions is lessened as you reach certain thresholds of income.

A Denver tax attorney at The McGuire Law Firm can assist you with your tax questions, matters and issues.  Our goal is to educate our clients and create long term relationships.  Thus, whether  you are looking for individual tax planning, assistance with a business tax issue or you have an issue or problem with the Internal Revenue Service, a tax attorney at The McGuire Law Firm can assist you.

Contact The McGuire Law Firm to schedule your free consultation with a Denver tax attorney!  Offices in Denver and Golden Colorado.