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Figuring Out Taxable Wages & Itemized Deductions
January 31st, 2010 by Georgia in Taxes

To figure your itemized deduction you will need to fill in a 1040 schedule A form to itemize all the deductions you are entitled.

Itemized Deductions

Your deductions include:

  • medical expenses
  • dental expenses
  • taxes you paid which include -
  1. state and local
  2. general sales tax
  3. real estate taxes
  4. personal property taxes
  5. interest you've paid on home mortgage (that is a loan on your primary home, or second home that may include first and second mortgages, or home equity loan along with the points if you had refinanced the mortgage that was reported to you on Form-1098)
  6. Mortgage interest that isn't reported on a 1098 which was paid to a person from whom you bought the house from
  7. charity contributions that you can have a written record with name of the charity, date, amount of the contributions that can be in a check or cash
  8. out of the pocket expenses you paid for such as volunteer work, property, clothing, furniture, or gifts.
  • A casual or theft loss can, job expenses,certain miscellaneous items, for example safety shoes, safe deposit box and tax preparation.
Taxable Wages

Enter the total household wages, salaries,and tips made for the fiscal year that should be on your 1099 tax form sent to you from your employer. Taxable interest accumulated during the year, if your receive a taxable refund on your state taxes from the previous year, capital gain distributions, if you exchanged assets in a trade or business, fully taxable pensions and annuities.  If you receive a lump-sum contributions from a profit sharing or retirement plan some of the funds can be taxable if an early distributions is taken and the total amount was not rolled over in a qualified roll over.

*If scribbling your personal details seems too daunting a task, you can always efile.  There are many reputable and easy to use free efile services.

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