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.
Effective for the 2013 tax year, itemized deductions will be reduced or phased-out (called the “Pease”) for single taxpayers whose adjusted gross income (AGI) exceeds $250,000 and married filers whose AGI exceeds $300,000. 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.
This item is available in full to subscribers.
We have recently launched a new and improved website. To continue reading, you will need to either log into your subscriber account, or purchase a new subscription.
If you have an active digital subscription, then you already have an account here. Just reset your password, if you've not yet logged in to your account on this new site.
If you are a current print-only subscriber, and want access to our website,click here to view your options for changing you subscription level.
Otherwise, click here to view your options for subscribing.
Please log in to continue |