ITEMIZED DEDUCTIONS 

  • Charitable contributions
  • Medical and Dental Expenses
  • Mileage deductions
  • Medical or Moving Expenses
  • Job search Purposes
  • Education Expenses
  • Record Keeping Requirements
  • Form 1098, Mortgage Interest Statement
  • Employment Expenses
  • Casualty & Theft Losses
  • Tax Preparation

 

CHARITABLE CONTRIBUTIONS

Contributions can be of cash, includes check and credit card donations, or noncash items. If you donate clothes or furniture to a qualified charity, the value of those items may be deductible if they are in good used condition or better. Keep receipts from charity, noting the items donated as well as their fair market value when donated. Cash contributions, regardless of the amount, require a bank record or written confirmation from the charity.

Miles driven for volunteer work and for charitable organizations and functions is tax deductible.

  •   14 cents per mile in 2011 and 2012

Commuting miles, the miles driven from home to an office, are not allowed. Students who are taking courses that are required by their employer, or are work-related, may deduct this mileage at the business mileage rate.

Separate commuting and personal mileage from the mileage driven for business, medical or moving, and charitable purposes. The easiest way to document mileage is to write it all down in a log or notebook.

 

MEDICAL AND DENTAL EXPENSES

You can deduct only the part of your medical and dental expenses that exceeds 7.5%  of

the amount on Form 1040, line 38.

You can include only the medical and dental expenses you paid this year, regardless of when the services were provided. You cannot include medical expenses that were paid by insurance companies or other sources. This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services.

 

MILEAGE DEDUCTION

The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56.5 cents per mile for business miles driven.
  • 24 cents per mile driven for medical or moving purposes.
  • 14 cents per mile driven in service of charitable organizations.

The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

 

MEDICAL OR MOVING EXPENSES

This includes miles driven to and from doctors and dentists, and trips to the pharmacy to pick up prescriptions. Taxpayers who have moved at least 50 miles during 2011 in order to start work at a new work location in their field of employment may be able to deduct some moving expenses.

  • 19 cents per mile from January 1-June 30, 2011
  • 23.5 cents per mile from July 1-December 31, 2011
  • 23 cents per mile in 2012.

Commuting miles, the miles driven from home to an office, are not allowed. Students who are taking courses that are required by their employer, or are work-related, may deduct this mileage at the business mileage rate.

Separate commuting and personal mileage from the mileage driven for business, medical or moving, and charitable purposes. The easiest way to document mileage is to write it all down in a log or notebook.

 

JOB SEARCH PURPOSES

Mileage expenses incurred while seeking new employment in the same occupation are deductible. The standard mileage rate from July 1, 2011 to December 31, 2011 has been increased to 55.5 cents per mile from 51 cents per mile January 1, 2011 through June 30, 2011.

  

EDUCATIONAL EXPENSES (for a job-related education)

If your education qualifies, you can deduct local transportation costs of going directly from work to school. If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. The qualifying job-related education rate is 51 cents per mile January 1, 2011 through June 30, 2011 and 55.5 cents per mile from July 1, 2011 to December 31, 2011.

 

RECORD KEEPING REQUIREMENTS.  It is important to keep accurate mileage records for deduction. The records to keep are:

  • Business purpose
  • Total miles for the year
  • Times and dates
  • Mileage for each deductible use
  • Place/address
  • Charitable purpose
  • Medical & dental
  • Moving Expenses purpose
  • Educational purpose

 

FORM 1098; MORTGAGE INTEREST STATEMENT

Use Form 1098 to report mortgage interest of $600 or more received by you during the year in the course of your trade or business from an individual, including a sole proprietor. Report only interest on a mortgage as defined in the Instructions for Form 1098. Also use Form 1098 to report mortgage insurance premiums of $600 or more for the calendar year received by you from individuals in the course of your trade or business.

The $600 threshold applies separately to each mortgage; thus, file a separate Form 1098 for each mortgage. You may, at your option, file Form 1098 to report mortgage interest of less than $600, but you are subject to the rules in the Instructions for Form 1098.

If an overpayment of interest on an adjustable rate mortgage (ARM) or other mortgage was made in a prior year and you refund (or credit) such overpayment, you may have to file Form 1098 to report the refund (or credit) of the overpayment.

 

EMPLOYMENT EXPENSES, FORM 2106 OR 2106-EZ

Use Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, to figure your deduction for employee business expenses. You can deduct the expenses that exceed 2% of your adjusted gross income. Depending on your employer’s reimbursement arrangement, special rules may apply. If a personal vehicle is used for business purposes, either a standard mileage rate or actual expenses can be claimed. Good written records are required.

 

CASUALTY AND THEFT LOSSES

If you lose property through a casualty or theft, you may be entitled to a tax deduction. Such casualties would include car accidents, fires, vandalism, disasters such as hurricanes or another identifiable event that is sudden, unexpected or unusual in nature. If your property is covered by insurance, you subtract any insurance or other reimbursement you received or expect to receive when you figure your loss. You claim your casualty or theft loss on Form 4684, Casualties and Thefts.

 

TAX PREPARATION FEES

The tax preparation fees are usually be deducted in the year you pay them and are subject to the 2%.limit.