Itemized Deductions on Schedule A: Understanding Taxes

💡Itemized deductions are deductions from adjusted gross income and are only useful if they are greater than the standard deduction.

🧾Itemized deductions include non-trade business expenses, employee expenses, investment expenses, medical and dental expenses, taxes paid, interest on mortgage and investments, charitable contributions, and miscellaneous expenses.

🏢Real property taxes are deductible if they are based on the value of the property, while special assessments for local benefits are not deductible.

🌎Foreign income taxes are deductible, while federal income taxes, FICA taxes, excise taxes, and customs duties are not deductible.

💰Sales and use tax is deductible, and it can be deducted in the year it is paid, regardless of the tax year.

What are itemized deductions?

—Itemized deductions are deductions from adjusted gross income and are used when they are greater than the standard deduction.

Which expenses can be included in itemized deductions?

—Itemized deductions can include non-trade business expenses, employee expenses, investment expenses, medical and dental expenses, taxes paid, interest on mortgage and investments, charitable contributions, and miscellaneous expenses.

Are real property taxes deductible?

—Real property taxes are deductible if they are based on the value of the property. Special assessments for local benefits are not deductible.

Which taxes are not deductible?

—Federal income taxes, FICA taxes, excise taxes, and customs duties are not deductible.

Can sales and use tax be deducted?

—Yes, sales and use tax is deductible and can be deducted in the year it is paid, regardless of the tax year.

00:00Itemized deductions are deductions from adjusted gross income and are only useful if they are greater than the standard deduction.

05:59Itemized deductions include non-trade business expenses, employee expenses, investment expenses, medical and dental expenses, taxes paid, interest on mortgage and investments, charitable contributions, and miscellaneous expenses.

08:45Real property taxes are deductible if they are based on the value of the property, while special assessments for local benefits are not deductible.

09:49Foreign income taxes are deductible, while federal income taxes, FICA taxes, excise taxes, and customs duties are not deductible.

10:57Sales and use tax is deductible and can be deducted in the year it is paid, regardless of the tax year.