

Williams DUI & Risk Reduction School
# 10100
Williams DUI & Risk Reduction School
# 10100

Itemized Deductions
Itemized Deductions
Itemized Deductions
Posted on October 20, 2018 by G & R Tax Services
MEDICAL AND DENTAL EXPENSES
Deductible expenses include:
Prescription medicines and drugs (including insulin)
Medical, dental, and nursing care, including amounts paid for UN-reimbersed qualified long-term care services
Medical and hospital insurance premiums, including amounts paid for eligible long-term care (subject to certain limitations based on the insured person’s age)
Prescription eyeglasses, hearing aids, crutches, wheelchairs, and guide dogs
Certain home improvements made for medical purposes or to make the home suitable for a disabled person
Nondeductible expenses include:
Life insurance policy premiums
Nursing care for a healthy baby
Nonprescription drugs of medicines
Weight-loss programs (unless recommended by doctor)
Funeral, burial, or cremation costs
Unnecessary cosmetic surgery (surgery that does not correct congenital abnormality or an abnormality caused by injury or disease)
TAXES
Deductible Taxes:
State, Local and Foreign Income Taxes – hose taxes include tax withheld, estimated payments and tax paid for an earlier year
Real Estate Taxes – State, Local or Foreign taxes on real property, such as the taxpayer’s house or land, are deductible. Real estate taxes are deductible when paid. If taxes are paid with a mortgage payment and held in escrow, do not deduct the taxes until they are paid back by the bank or the mortgage lender.
Personal Property – Tax-Taxes that state and local governments charge on the value of personal property is deductible. A portion of the cost of personal vehicle registration may fall in this category
Nondeductible Taxes:
Federal taxes – income tax, social security (FICA), Medicare, railroad retirement tax, and excise taxes or customs duties
Water and sewer taxes
State, local and federal taxes on gasoline, diesel, and other motor fuels used in a non-business vehicle.
Utility taxes – gas, electricity, etc.
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INTEREST
Home Mortgage Interest
A taxpayer can fully deduct points in the year he or she pays them only if all of the following conditions apply:
The taxpayer itemizes deductions
The loan is used to buy or improve a main home (a main home is the one the taxpayer lives in most of the time)
The loan is secured by that main home
The loan meets the requirements for deductible mortgage interest, discussed earlier under Home Mortgage Interest
Paying points is an established business practice in the area where the loan was made
Non-deductible Interest:
Loan fees; aid for services necessary to get a loan (closing cost, down payment)
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CONTRIBUTIONS
Qualifying Organizations:
Churches, synagogues, temples, mosques, Salvation Army, Red Cross, CARE, United Way, Boy & Girl Scouts, World Wildlife Fund, etc.
Nonprofit schools and hospitals
Non-qualifying Organizations:
Business organizations, such as the Chamber of Commerce
Political organizations and candidates
Homeowner’s associations
Deductible Items:
Money gifts
Dues, fees, and assessments paid to qualified organizations above the value of the benefits received (not country clubs or other social organizations)
Fair market value of used clothing, furniture, etc.
Nondeductible Items:
Cost of raffle, bingo, or lottery tickets
Blood donated to a blood bank or the Red Cross
Direct contributions to an individual
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MISCELLANEOUS ITEMIZED DEDUCTIONS
Deductible Items:
Union dues and fees
Uniforms not adaptable to general use
Professional books, magazines, journals, etc.
Employment-related educational expenses
Expenses of looking for a new job
Investments counsel fees
Tax counsel and assistance
Safe deposit box rental for investment documents
Acupuncture
Insulin
Air conditioner for allergies
Nursing fees
Contacts, including supplies
Chiropractic services
Cosmetic surgery for deformity relating to a congenital abnormality, accident, or disease
Birth control prescribed by a doctor
Investment interest
Casualty losses
Theft losses
Work clothes not suitable for normal wear
Occupational licensing fees
Travel expenses relating to managing investments
IRA administration fees
Fees to collect interest or dividends
Trust administration fees
Impairment related work expenses
Nondeductible Items:
Burial or funeral expenses
Wedding expenses
Home repairs, insurance and rent
Insurance premiums (except medical insurance premiums)
Losses from the sale of a taxpayer’s home, furniture, personal care, etc.
Personal legal expenses
Commuting expenses to and from work