Things You'll Need:
- Perhaps a calculator
- Perhaps the IRS tables for deductions of noncash assets
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Step 1
Determine whether there is any chance that you will be able to itemize deductions for this tax year. In order to do this, your total itemized deductions must exceed your standard deduction for the tax year.
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Step 2
Find your total itemized deductions by adding up all of your home mortgage interest, real estate taxes, personal property taxes, charitable contributions, miscellaneous deductions and unreimbursed medical expenses.
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Step 3
Itemize your deductions if your total from all of the previously listed items comes to an amount greater than your standard deduction amount. If you are single, your itemized deductions must exceed $5,450 and $10,900 for married couples.
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Step 4
If you have made any noncash charitable donations, several commercially available income tax preparation programs and providers offer an IRS-approved set of tables that assign values to virtually every major category of noncash donation. They have published a table that shows how much you can deduct for a given noncash donation, such as a car, piece of furniture or clothing. The amounts listed are broken down by condition, so that a donation of something that is in good condition will be worth more than something in poor condition.
* This is important to know because if you are close to being able to itemize deductions, making a noncash donation of an old piece of furniture or similar item that is still in good condition may make the difference. -
Step 5
Count all of your unreimbursed medical and work-related expenses. These expenses can only be deducted in excess of a certain percentage of your adjusted gross income, but it still can't hurt to total them and enter them in the Schedule A of your 1040.
Comments
willieoh said
on 8/17/2009 Good points, I will keep these in mind! 5*
starlet67 said
on 3/18/2009 Good guidelines for maxing your itemized deductions!5*