Itemized Deduction

Anonymous
timer Asked: Jun 4th, 2018
account_balance_wallet $10

Question description

Identify some common miscellaneous itemized deductions and identify any limitations that are imposed on the deductibility of these items.

One itemized deduction allowed is for medical expenses. In what cases are medical insurance premiums paid by an individual not deductible as qualified expenses?

Can you make response each posted below # 1 to 3

1. From: Carolyn Holland posted Jun 2, 2018 10:20 PM

Union dues are a miscellaneous itemized deduction subject to the 2% of AGI limitation. Job-search costs are deductible if the taxpayer is trying to find a job in the same profession that they currently work. Education and related expenses are deductible if the education improves a skill required in the taxpayer's employment or trade or business or the education meets the expressed relationship, status or rate of compensation. Uniforms and special clothing are only deductible if they meet three requirements: 1. clothing is required as a condition of employment. 2. clothing is not adaptable for normal everyday use. 3. clothing is not actually used by the taxpayer for everyday use. Expenses for production of income, for example investor expenses such as counsel fees or custodian fees. Expenses connected with the determination of tax are another miscellaneous itemized deduction. These are fees such as tax preparation fees, legal fees for defense against tax evasion charges and appraisal fees for determining fair market value of property for tax purposes.

Medical insurance premiums that do not qualify as deductible expenses are as follows:

Life insurance policies; insurance policies that provide payments for loss of earnings; insurance policies for loss of life, limb, sight, function, etc.; insurance policies that pay you a guaranteed amount each week for a stated number of weeks if you are sick, injured or hospitalized; the part of your car insurance policy that provides medical insurance coverage for all person injured in or by your car; health or long-term care insurance if the premiums were paid with tax-free distributions from a retirement plan made directly to the insurance provider without your intercession and these payments would have otherwise been included in your income.

2. From: Shaun White posted Jun 2, 2018 10:10 PM

Hello Classmates,

Some common miscellaneous itemized deductions are Certain Employee Expenses and Cost of Tax Advice.

The main limitation is that any deduction made, that deduction must exceed 2% of the individuals AGI. Some deduction limitations for Certain Employee Expenses is that people cannot deduct their gas mileage, food expenses, clothing expenses, or any other deductions that’s for their everyday routine. If there’s an expense that’s strictly for work like a certain laptop, supply, clothing item, food order, or travel expense, only then can it be claimed. A deduction limitations for Cost of Tax Advice is that you’re not able to deduct any expenses incurred with paying taxes, like interest charged to an individual who needs to make payments, which is pretty sad.

For medical expenses 1 case in which an individual cannot deduct their medical expenses is when their expenses don’t exceed 10% of their annual earnings. Another instance is if the individual is reimbursed for payments made by the hospital or insurance. For example, in some cases the individual may pay out of pocket during the visit and then get reimbursed or refunded later. That expense can no longer be deducted.

3. From: Latosha Graham posted Jun 2, 2018 5:59 PM

Most miscellaneous itemized deductions are subject to a 2% adjusted gross income limitation. Some of the most common are union dues, job searching cost, education and related expenses, uniforms and special clothing, expenses for the production of income, and expenses connected with the determination of tax.

All of your medical expenses that you paid may not be deductible if the expenses do not exceed the percentage of your AGI. If you can't itemize greater than your standard deduction, none will be qualified either.

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