First, consider whether your itemized deductions (medical expenses, mortgage interest, state & local taxes, property taxes, donations) are greater than your standard deduction. Next, consider whether your medical expenses exceeded 7.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000, your medical expenses must be greater than $7,500 to generate a deduction. Only the amount over and above 7.5% of AGI is deductible, so if your medical expenses were $8,000 you would have a $500 deduction, assuming you itemize. Medical deductions are somewhat rare due to this high threshold.
So which expenses are deductible? IRS has a full list on their website: Topic no. 502, Medical and Dental Expenses. If you're unsure about an expense, check out their Can I Deduct My Medical and Dental Expenses? tool.
Noncash donations can be taken as an itemized deduction on federal tax returns. Some states allow a deduction for noncash donations for those who take the standard deduction. For example, Minnesota allows a deduction for 50% of the amount of cash & noncash donations over $500 for the year.
You must determine the fair market value of items donated. You can use the Noncash Donation Valuation Worksheet on our Downloads page to figure out the value. If your total donations for the year are greater than $500, you must report the date & fair market value of each donation on Form 8283. If a single item donated is valued over $5,000 an appraisal is required.
The invoice or sales contract showing what was purchased, the date, and the cost. Some credits allow labor to be included in the cost while others do not, so it is best to receive an itemized invoice or sales receipt.
To find out whether your improvement qualifies for a tax credit, visit the ENERGY STAR website.
Find a list of energy-related incentives in your area at https://www.dsireusa.org/
The time of sale report showing the vehicle's year, make, model, VIN number, purchase date, and cost. This should have been provided by the dealership at the time of purchase.
Visit www.fueleconomy.gov for more information on claiming this credit.
Equi-Tax
1870 E 50th St. Ste. 8 Inver Grove Heights, MN 55077 us
Copyright © 2019 Equi-Tax - All Rights Reserved.
Powered by GoDaddy Website Builder
This website uses cookies. By continuing to use this site, you accept our use of cookies.