Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
quest

Should I itemize? With income under 20,000?

Recommended Posts

I have been laid off and earned less than 19 :lol: ,000. Have 4,000 in child support and around 2000 from a bldg I just purchased as oo. It cost few hundred to evict and clean a unit. Must I itemize? :lol:

 

Any advice suggestions are appreciated.

 

Thanks,

 

 

Quest

Share this post


Link to post
Share on other sites

What will you itemize? In looking at everything you might consider itemizing on Schedule A, you can claim mortgage interest on your primary residence (the amount that applies to the residence half of your duplex) along with the property taxes (the half that applies to your residence) and your state and local income tax withholdings. What else do you have to deduct? Out of pocket medical costs that exceed 7.5% of your taxable income are deductible, as are miscellaneous expenses that exceed 2% of your taxable income.

 

Assuming that the investment half of your duplex was placed in service as a rental when you acquired the building, then expenses for evicting the previous tenant and cleaning your investment unit are claimed on Schedule E -- not itemized on Schedule A. If, however, the eviction and cleaning expenses were for your residence unit, they are non-deductible personal expenses incurred for your primary residence.

 

I have always understood that child support payments are personal expenses unless you can show that you provide more than half of the support for the child or have an agreement with your child's custodial parent that you will claim your child as a dependent on your tax return. In this sense, the support payments become a deduction only if they make you eligible for an extra personal exemption for a dependent.

 

If the total of all your itemized deductions is greater than your standard exemption, then itemize. Otherwise, take the standard deduction.

Share this post


Link to post
Share on other sites

×
×
  • Create New...