itemized deductions

You should still assemble your itemized deductions even though you may not need them on your federal returns because of the increased standard deductions. Some states will still let you itemize your deductions because of how they tax income from transferred from your federal return. We will be checking each return to insure that you take the most deductions allowable both on the federal and state returns.

Also on the federal return the miscellaneous deductions for unreimbursed employee business expenses, our preparation fees etc are no longer deductible. However on some state returns those deductions are still deductible.

State withholding, property taxes and personal property taxes are still deductible up to a maximum amount of $10,000. Again, if you have more than this amount you should list it because some states may allow it.

Mortgage interest on home acquisition indebtedness is still fully deductible for new mortgages $750,000 and less. Previous original mortgage interest is grandfathered. Home equity loan interest is NO LONGER deductible on Schedule A. However some states may still allow the home equity interest deduction.

© Rodney W Wicklund and Associates 2011