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The most common case is when you and your spouse are filing separate returns. The law states that if you are married filing separately but you spouse itemizes, then your standard deduction is reduced to 0. A spouse may decide that it is more favorable in the aggregate to not itemized in other to let the other spouse claim the full standard deduction.
There are also some strange interactions with the Alternative Minimum Tax (AMT) which takes away some of your itemized deductions, so some people may be better off just taking the standard deduction.
Sometimes, people may know that some of their deductible expenses will be refunded in a future year (such as a state tax refund) and would rather not have to pay tax on the refunded amount in the future year.
Also, some people may not have confidence in their ability to withstand an audit and may prefer to just play it safe (in their way of thinking).
What else can I help you with?
Is money spent on lenses for cataract surgery tax deduxtible?
These would be tax deductible under Medical Expenses on Schedule A if you have enough expenses to overcome the threshold and itemize. You cannot use any medical expenses that are reimbursed or paid for by insurance.
Do you have enough deductible expenses to make itemizing worthwhile?
When filing your taxes, you can take the standard deduction or check to see if you have enough deductible expenses to make itemizing worthwhile. In many cases, itemizing is the best option. To see if you have enough expenses, total them and compare them to the standard deduction.
Are prescription costs tax deductible?
You can include in medical expenses costs for prescribed medicines and drugs. You can deduct medical expenses only if you itemize deductions on IRS Form 1040 Schedule A and only to the extent they exceed 7.5% of your adjusted gross income. Most people do not have enough medical expenses to exceed the 7.5% threshhold so do not get a medical expense deduction. See the attached links for more information.
Can you claim on taxes taking family member long distance to doctor?
No. If the family member you are referring to is not your dependent. If the person is a dependent on your return then you can use medical mileage allowance for driving to and from a physician or hospital for transporting the patient, but not to visit a patient. This would be filed on your Schedule A of your 1040 Tax Form if you have enough to itemize.
Is used car sales tax deductible?
If you file a Form 1040, and itemize deductions on Schedule A, you have the option of claiming either state and local income taxes or state and local sales taxes. (You can't claim both.) If you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid and claim that amount if it is larger than your State & Local income taxes that year.In most States with an income tax this is rather uncommon, unless you have made some fairly substantial sales taxable purchases and have both a low taxable income and enough expenses to itemize.
Is it incorrect to use personal living cost as expenses for a sole owner of a company?
Not enough is disclosed about the legal status of the sole owners business and/or its relationship to tax laws to answer this question.AS A GENERAL RULE: Expenses that you would normally incur in your day-to-day life, that are not associated with the business, are NOT deductible.
Are estimated tax payments deductible?
No - even taxes actually paid aren't deductible from determining taxable income - from which your tax is due. (That would be completely circular). If estimates were deductible..I'd make an estimate of enough to lower my taxable income to 0 - or low enough to not pay tax at least....and get a refund of all my overpaid estimate.
What is loss in business?
it is a situation where income is not enough to meet the running expenses(operating expenses) of the business
Is it true that their Charitable receipts are useless?
Not enough information provided to answer accurately. Who is "Their" you refer to? If it is a business that is NOT a corporation then the answer would be yes they are useless since only a corporation can make a business charitable contribution. If it is a Sole-Proprietorship or a Single-Member LLC then they can file a Form 1040. While the charitable contribution would not be allowed on the Schedule C, they could claim it on a Schedule A if they have enough to itemize. If they are individuals and they don't have enough to itemize, then the receipts would be useless as well.
What is the purpose of IRS schedule A?
Schedule A of the 1040 individual tax return is where a taxpayer will list itemized expenses if they wish to itemize. The 1040 tax return allows taxpayers the option of taking a standard deduction or to use the amount listed on their Schedule A (Itemized Expenses). Less and less people use Schedule A as the standard deduction is increased every year. With low mortgage rates most people no longer have enough itemized expenses to exceed the standard deduction. Since you can use either the standard deduction or the itemized expenses, you want to take the one that allows you to reduce your taxable income the most. This has left more and more people better off to take the standard deduction.
What is Revenue Deficit?
When the money coming in (revenue) is not enough to cover expenses.
What is the importance of revenue to a business?
revenue is what pays the expenses of running the business and hopefully you can even make enough revenue above expenses to make a profit
