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QC02252016

18 The Queens Courier • FEBRUARY 25, 2016 for breaking news visit www.qns.com tax tips Boost your tax refund by itemizing deductions Generally, you must decide whether to itemize or to use the standard deduction on your income tax return. You should itemize if your allowable itemized deductions are greater than your standard deduction. The taxpayer must maintain the records and receipts to substantiate the itemized deductions. All deductions are reported in the tax year in which the eligible expenses were paid. For the 2015 tax year, itemized deductions will be reduced or phasedout (called the “Pease”) for single taxpayers whose adjusted gross income (AGI) exceeds $258,250 and married filers whose AGI exceeds $309,900. The total amount of itemized deductions is reduced by 3-percent by which the taxpayer’s AGI exceeds the income threshold amount, with the reduction not to exceed 80-percent of the allowable itemized deductions. You may benefit from itemizing your deductions on Form 1040, Schedule A if you: • Had large, uninsured medical and dental expenses. Payments for doctors and dentists, premiums for medical insurance, payments for prescription drugs, and medical transportation are considered. For the 2015 tax year and beyond, if you are under 65 years of age, you can deduct health costs on your tax return for yourself, your spouse and your dependents only when the expenses exceed 10-percent of your adjusted gross income (AGI). The types of medical expenses are constantly expanding as new tax and IRS court decisions are rendered. It may be wise to check for specifics with a tax professional. • Had state and local income taxes withheld from your wages or paid estimated state taxes. Real-estate taxes, personal property taxes, and state and local sales taxes fall into this tax-deductible category. • Paid mortgage interest on your principal and/or vacation home, or private mortgage-insurance premiums. Also, points paid on a new home and investment interest can be deducted. Personal credit-card interest is not deductible. • Made large contributions to qualified charities. Both cash and noncash (usually clothing) items are considered. If noncash items exceed $500, you must attach IRS Form 8283, Noncash Charitable Contributions. One can deduct charitable donations only if you itemize your tax return. • Had large, uninsured casualty or theft losses. You are allowed to claim only the amount that exceeds 10-percent of your AGI after subtracting $100 for each casualty loss on your return. Losses due to Hurricane Sandy may be eligible for casualtyloss deductions. You claim your casualty or theft losses on IRS Form 4684, Casualties and Thefts. • Had miscellaneous and employee deductions that exceeding 2-percent of AGI. Examples include union dues, fees paid to tax preparers, and investment expenses. • Had gambling losses, but only to the extent of gambling winnings. For example, a person wins $3,000 in certain gambling activities and loses $3,500 in other gambling activities can deduct only $3,000 of the losses against the $3,000 income, resulting in a break-even gambling activity. The remaining $500 excess loss is not deductible. Itemized deductions allow taxpayers to reduce their taxable income and thereby pay less in taxes. If you incorrectly filed your return using the standard deduction and want to change to itemized deductions, you may do so within a three-year period allowed for amending your return. Caution: If you are married and filing a married filing separate return and your spouse itemizes deductions, then you are also required to itemize on your tax return. s “Over Two Decades Of Personalized Service” LJC@loucarino.com Call Now & End Your Tax Nightmare! • Owe the IRS more than $10,000? • Being Audited? • Unfi led Tax Returns? • Wage & Bank Levies? Co-Author of the best selling book “Breaking the Tax Code” (T) 877-TAX-1040 (F) 718-894-4476 Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor scandela@thetaxadvocategroup.com www.thetaxadvocategroup.com


QC02252016
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