Exploring Itemized Deductions, Part II

Last week we covered the first half of Schedule A – Itemized Deductions.  This week we will take a look at deductions on the remainder of this schedule.
 

Exploring Itemized Deductions, Part I

Last week we discussed possible deductions that could help reduce your Adjusted Gross Income (AGI).  Once your AGI has been determined, the next item on your return is deductions.  You are guaranteed at least the Standard Deduction amount each year based on your filing status.  However, if you are able, you can qualify to itemize your deductions.  Generally itemizing your deductions is more advantageous as it allows for a larger reduction against your AGI.  This week, we will take a look at the first three sections of Schedule A – Itemized Deductions.
 

Tax Items to Reduce Adjusted Gross Income

Each year you are required to report you income from all sources to arrive at your total income shown on page one of your tax return.  But the key amount used on your tax return for most calculations and limitations for deductions is your Adjusted Gross Income (AGI).  Below are several key items that you may be able to include on your return to reduce your AGI.
 

Tax Considerations When a Parent Enters a Nursing Home

Last week we discussed some tax credits and deductions that may be available to you when taking care of your parent or other elderly person.  However, there are times when your parent may need more care than you can provide on your own.  What are some of the tax issues that you or your parent(s) may face if they need to enter a nursing home?  Building on last week’s article, below are some situations you may encounter that could affect your parent’s or your taxes.
 

Tax Considerations When Caring for an Elderly Person

When we were young children living at home under our parents care, we were their dependents and they may have been able to claim deductions and/or credits for certain expenditures they made on our behalf for tax purposes.  What happens after many years and the roles reverse?  When your parents are advanced in age and depend on you to care for them, you may be eligible for some tax breaks as outlined below.
 

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