From the course: Finance Foundations: Income Taxes

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Itemized deductions

Itemized deductions

From the course: Finance Foundations: Income Taxes

Start my 1-month free trial

Itemized deductions

“

- Now that we've worked through the entire Form 1040 for Ramon and Kay and have seen that they're getting a tax refund of $2,801, let's add a little complication. Remember that Ramon and Kay took the standard deduction of $24,000. Well what if Ramon and Kay spent more than $24,000 on tax deductible items? The tax law gives them the opportunity, if they want to, to itemize their tax deductions. If they're going to do that, they have to complete Schedule A. This adds a little complication to the completion of their tax form, but not too much. They just need to carefully list the collected data for the amounts that they've spent for the following items. State and local income and property taxes, home mortgage interest, and charitable contributions. Of course there are other deductions that can be entered in Schedule A, such as large unreimbursed medical and dental expenses, and casualty losses in a federally declared disaster, but these three categories are the most common. For married…

Contents