I own a home. My husband and I want to itemize and hopefuly we won't owe. Do we need reciepts for everything? What can we itemize. Is there a website that explains or has a list of things we can itemize.
2007-01-18 17:01:59 · 5 answers · asked by Peggy Pirate 6 in Business & Finance ➔ Taxes ➔ United States
Here's a pretty comprehensive list of deductions:
http://www.irs.gov/taxtopics/tc500.html
Save your receipts. You'll need them in case of an audit.
2007-01-18 17:10:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The IRS has a website that will show you a Schedual A:
www.irs.gov
The home mortgage will have your interest and property taxes for the year, both are deductible.
The IRS recommends that you have receipts for everything you claim on a schedual A and keep the receipts with your tax returns for 3 years.
However, poor people are usually not audited. It's a waste of money and time for a $60/hour auditor to try to squeeze another $75 out of a lower income family (meaning anything under about $50k per year). They usually go after the big dogs.
I'm surprised no one has given you the standard deduction yet! If your itemized deductions are less than $13000, you don't need to worry about it. The easiest way to figure this out is just add up your mortgage interest and property taxes and see how close you come. If you're over $10,000 just with these two, or if you've had excessive medical bills (in the thousands), give it a try. If you're under this amount, you'll have a hard time making up for it with the other little things you get to add on.
2007-01-19 05:46:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can read the instructions for Schedules A and B of Form 1040:
http://www.irs.gov/pub/irs-pdf/i1040sa.pdf
Schedule A lists what you can itemize.
For your home, keep the closing documents when you purchased the home. Keep the Form 1098 sent to you by the mortgage lender. Keep documents showing real estate taxes paid as well.
2007-01-19 01:47:45 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
You do not need to supply receipts to your tax preparer, HOWEVER, if ever questioned by the IRS, you do need some type of written documentation. This can be anything, such as a calender of expenses. Anything that shows written documentation. Take a look at a Schedule A form (this is where you itemize versus standard deduction).
2007-01-19 01:34:06 · answer #4 · answered by Successy Lady 1 · 0⤊ 0⤋
Get turbo tax basic or tax cut basic. Both cost about $20 and will walk you through the itemizations one at a time.
2007-01-19 01:10:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋