Certain expenditures qualify as a deduction for your taxes.
These expenditures are referred to as itemized deductions.
In general, if your total itemized deductions exceed the
standard deduction, you should itemize. This includes these
You do not qualify for the standard
deduction, or the amount of the standard deduction is
You have large, uninsured medical
and dental expenses
You pay interest and taxes on a home
or personal property
You have large, unreimbursed employee
You have large, uninsured casualty
or theft losses
You make large contributions to qualified
Most deductions are subject to the 2% of adjusted gross
income (AGI) rule. This means the sum of expenditures greater
than 2% of your total AGI are deductible in the amount that
exceeds the 2%. Medical and dental expenses that are greater
than 7.5% of your total AGI are deductible in the amount
that exceeds the 7.5%.
Medical and dental expenses
State and local income taxes or sales
Real estate and personal property
Home mortgage and investment interest
Home mortgage points
Casualty and theft losses
Individuals Who Must Itemize
A married person whose filing status
is married filing separately and whose spouse is itemizing
An individual who is a nonresident
alien or dual-status alien during any part of the current
tax year. Dual status occurs when you are considered both
a nonresident and resident alien during the same year.
An individual who changes his or her
annual accounting cycle and is filing a return for a period
of less than 12 months.
Income Limits for Itemizing Deductions
Certain itemized deductions are limited if the 2009 adjusted
gross income exceeds $166,800 for married filing jointly,
or $83,400 for married filing separately. Tax year 2009
is the last year for AGI limits on itemized deductions.
For more information, see IRS
Instructions for Schedule A.
> Itemized Deductions
> Federal Withholding
> Standard Deductions
> Tax Credits
> Education Credits
> Refund Cycle Chart