When it comes to claiming tax deductions, most taxpayers go for the standard method with their income tax return - it’s usually easier than itemizing, there are no receipts to backtrack, and amounts typically increase each year for inflation.
But, in most cases, itemized deductions can get you a bigger tax break and possibly a larger refund. Completing a Schedule A for deductions may require more effort than the standard method, but you only need to fill out the sections that apply to you.
Here are a few deductions from Schedule A that might be worth your time around tax season:
Gifts to Charity
You can report just about every charitable contribution on Schedule A. They can be cash donations including credit charges and checks, or other donations like household items and clothing. Whatever gift you gave, be sure to have a receipt from the charitable organization as proof.
Medical Expenses and Dental
Even with insurance, you still have out-of-pocket costs to pay each time you visit your doctor or dentist. It’s no secret you can total these amounts and claim a deduction. The only catch is that the value must be at least 10% of your gross income if you’re under 65 years of age.
State and Local Income/Sales Tax
If you’re paying state and local income taxes, you can get a deduction from those payments. But if your state income rate is low, and you made a huge purchase this year for a vehicle or something, you may just want to report the sales tax. The reason is you can only deduct one or the other - income tax or sales tax.
Homeowners can deduct the amount from their annual property tax bill as well as real estate taxes on any vacation homes or land you have for personal use. Those who pay taxes on various vehicles can deduct those amounts as well.
Losses from Casualty or Theft
Earlier this year, Hurricane Matthew pounded the east coast of the United States. Any recovery costs spent from a major disaster is tax deductible - the same goes for expenses from an unexpected accident or being the victim of a crime.
These are small glimpses of deductions that are available for taxpayers each year with a Schedule A. There are much more options like interest or insurance premiums, unreimbursed job expenses - you can even deduct costs from tax preparation fees. Check with your local tax professional for more details.
And if you need more time to get your itemized deductions together, e-file IRS Form 4868 with ExpressExtension.com. In minutes, you can transmit a personal tax extension and get approved for six extra months to file your income tax return. Download our FREE Express 4868 app and e-file from anywhere using your iOS or Android device.
Contact our U.S. - based support team in Rock Hill, South Carolina for any questions or assistance with e-filing tax extensions - we’re available at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us day or night with support@ExpressExtension.com.