Itemized Deductions
Medical - Please complete all medical expenses. Should you have medical expenses that you cannot classify into the printed categories, please put the description and amount under the classification"Other Medical".
Taxes - Enter all taxes paid during the tax year into their appropriate field . Do not duplicate any amounts that are input elsewhere, such as those amounts that are reported as withheld on your W-2 wages that are reported on your W-2 or taxes withheld on a pension distribution that is reported on the 1099-R..
Home Mortgage Interest Expense - You should receive a form 1098 for the mortgage interest paid on your home loan. If you purchased a home this year and paid "points" to get the loan, enter the amount paid for points below mortgage interest in the same input area.
If you pay mortgage interest to an individual, you must include the name, address, and social security number of that individual.
Points paid on a mortgage loan refinance are not currently deductible to the extent that those points were for refinancing a current loan balance. If you borrowed additional money on your mortgage to complete home improvements, then that portion of points that funded the additional mortgage balance for home improvements is currently deductible.
Investment Interest Expense - This type of interest expense is paid on money you borrowed that is allocable to property held for investment. This interest is subject to limitations based upon investment income. The "Carryover" of investment interest expense relates to prior years investment interest expense which was not deductible in that prior year. The carryover information can be found on Part 3, line 7 of the 1997 form 4952.
Passive Interest Expense - Passive interest is interest expense from passive investments. An example of this type of investment is a non-real estate limited partnership interest where you do not participate in the running of the partnership. Your involvement is limited to merely owning the limited partnership interest.
Personal Interest Expense - There is no longer any deduction for personal interest.
Cash Contributions - Please list all your cash (and check) contributions for the year. For any contribution in excess of $250, you are required to maintain a receipt from the charity as part of your records.
Non-Cash Contributions - Non-Cash contributions are typically comprised of clothing, books, household appliances, toys, old computers, etc. that you donate to charities. Checks are included as cash contributions.
Most of us give these types of items to Goodwill, the Salvation Army, our church or temple, etc. For all non-cash contributions, indicate the name and address of the charity, the description of the property donated, your cost of the property donated and the value of the property when donated.
For non-cash charitable contributions in excess of $500, the IRS requires additional disclosure on a form 8283 of your income tax return. Just fill in all the blanks on our form 8283 input section.
Contribution Carryovers - Please list any contribution deductions that were limited in prior years in the appropriate fields. You may have these if you gave an amount to a charity that exceeded 50% of your adjusted gross income in a prior year.
Unreimbursed Employee Expenses - List all employee business expenses. These are expenses paid by you directly, were not reimbursed by your employer, and relate to your job as an employee. They can include automobile expenses, business telephone expense, business publications, business computers, software, and peripherals, and any other necessary business related expenditures.
Be sure you retain cancelled checks and receipts for all expenses that you claim were for business purposes.
Investment Expenses - Investment expenses are expenses incurred for the production of investment (interest, dividends, and capital gains) income. For example, a fee paid to an investment advisor would be input here. Legal fees paid to protect your investments would be entered here. Money that you pay on a margin account for stock investments in Investment Interest Expense.
Other Miscellaneous Deductions - Input all miscellaneous itemized deductions in this section. Common miscellaneous deductions are tax preparation fees, safe deposit box rentals, union dues, or other professional dues related to your employment.
Child and Dependent Care Expenses - Please complete in full so we can compute the amount of the credit, if any is available.
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