Itemize


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Itemize

To list a specific expense the taxpayer has had over the course of the tax year in order to reduce one's taxable income. One may itemize most medical expenses, for example, and deduct them from one's taxable income. The same is the case for interest on mortgages and business expenses. The IRS allows itemized deductions as an alternative to the standard deduction, which takes a flat amount out of one's taxable income. Itemized deductions are subject to certain restrictions; for example, some expenses must exceed a certain percentage of the adjusted gross income to be deductible.
References in periodicals archive ?
When changing the election to claim the standard deduction or itemize deductions, taxpayers should be aware that the limitation of Sec.
Adding to NetGain's existing portfolio of telecom inventory and expense management solutions, iTEMize is a subscription-based software service that helps companies effectively control assets, address billing errors, and streamline their telecommunications process.
To maximize this deduction, schedule medical appointments--for example, physicals and eye exams--in the year you itemize, suggests George Corney, a tax research and training specialist at H&R Block Inc.
Taxpayers who keep a record of their charitable contributions can easily itemize their deductions on Schedule A and receive a tax break, as well as the joy of having supported a worthy cause.
GridPoint builds intelligent energy management (IEM) products to reduce electricity costs, improve power reliability and itemize energy consumption for the home and business.
Example: X, an employee who does not itemize, forgoes $1,000 worth of vacation time in 2006 that his employer contributes to a charity aiding Katrina victims.
Attend this seminar if single; claim no dependents; are under age 65; if taxable income is less than $50,000; if income is only from wages, salaries, tips, taxable scholarship and fellowship grants and interest of less than $400; have not been a nonresident alien at any time during the year; do not itemize deductions; claim any adjustments to income or tax credits; receive advance earned income credit payments; or owe any taxes other than the amount from the tax table.
Taxpayers should also decide if they are going to itemize.
An election to claim the standard deduction or to itemize deductions is binding for both regular taxable income and alternative minimum taxable income (AMTI).
To ensure there is back-up data to itemize expenses, use an organizer's calendar to record expense items, the amount and how paid.