Types of Federal Income Tax Itemized Deductions

There are several types of federal income tax itemized deductions. Taxpayers can attach the deductions with a Schedule A when filing returns. Filing a report of your deductions is a good course of action to minimize your income tax payments.

Types of Itemized Deductions

The following lists are the forms of deduction which you can report on your income tax return:

  • Medical and dental expenses - expenses include insurance premiums, prescribed medicines, professional fees for doctors, therapists, other medical providers, laboratory examinations, treatments and hospital costs.
  • Deductible taxes - include income taxes paid to the state and local government, sales, real estate and property taxes.
  • Paid interests - include home mortgage, insurance premiums on mortgage, investments and student loans.
  • Contributions to qualified charitable organizations like churches, nonprofit hospitals, educational institutions, national or local government and public recreations.
  • Property losses - include home and related items, vehicles and losses due to theft.
  • Expenses on homes used as business office - example: insurance, taxes on real estate and renovations.
  • Miscellaneous fees and expenses - employee expenses not refunded, fees paid to professional organizations, job hunting and business licenses.
  • Expenses for educational enhancement.
  • Travel expenses related to business, job or professional services.
  • Expenses on cars used for business related transactions.
  • Expenses on business functions and gatherings.

Are deductions to a cafe account tax deductible?

Yes, some options within a cafeteria plan might be tax deductible, but only if the option is after tax and an eligible deduction. The idea of a cafe plan is to give the tax payer options under the umbrella of the plan. Many of these options will be pretax. If the option in question is pretax, this means that the money has been deducted from your pay before the tax was taken out, or as if you had never earned it. Although you can't deduct these items, you have already benefited beyond what the deduction would have been worth.  

What tax deductions do S corporations have?

The tax deductions that are allowed S corporations are the same as for regular corporations. A normal corporation would file IRS tax form 1120, and an S corporation would file the 1120-S. While S corporations use different forms to file taxes, there are no itemized deductions that are unique to S corporations.

Typically, business owners can deduct operation-related expenses such as supplies, travel, insurance, contract labor, office equipment and other common financial transactions normally reported on a capital gains and losses statement (Schedule D). These deductions can be claimed by S corporations and regular corporations alike when filing the company's tax return.



What are the tax deductions when renting a primary residence?

Tax deductions for those renting a primary residence vary from state to state.

In some states, taxpayers can deduct all or a portion of monthly rent costs from their income when filing. By reducing the amount of taxable income, a filer is then able to reduce the overall amount of tax owed.

Other states have renters' credits. If certain qualifications are met, a specified credit may be awarded. These requirements are typically listed as having an income below a certain amount, paying the rent for a primary residence, or having senior citizen status.

Check your state's tax regulations to find out more.

What are the deductions for taxpayers that do not require receipts?

Tax receipts are necessary for all non-standard or itemized deductions. Standard deductions are the only ones that do not require any sort of receipt, as these are set by the government.

It is important to note that while you can file an itemized return without every receipt, if you are audited, you should be able to prove your transactions using a bank or credit card statement. You may also be able to prove an expense using verbal verification with the party who received the funds in the transaction. Ultimately, it is best to obtain either a hard copy or an electronic record of any transaction you wish to put towards itemized expenses on your tax return.


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