Let us begin with an overall review of itemized deductions. Itemized deductions
ID: 2715017 • Letter: L
Question
Let us begin with an overall review of itemized deductions. Itemized deductions are listed on Form Schedule A and flow through to the second page of Form 1040. Please describe and give an example of an itemized deduction that an individual is qualified to take. Deductions for employees are based on whether the expense is reimbursed or unreimbursed. How are unreimbursed expenses incurred by an employee reported on a tax return? Where are expenses for a self-employed individual reported on the tax return?
Explanation / Answer
If deductions are Itemised as, Medical and Dental Expenses, Unreimbursed Employee Business Expenses, Amounts paid for Certain Taxes, Interest, Contributions and Miscellaneous Expenses they can be Claimed in the Tax Return of an Individual, upto a Certain Extent, as mentioned in Schedule A. Examples are: Home Mortgage Interest, Investment Interest ,Gifts to Charity , Casualty and Theft. Ect
Unreimbursed Expenses Incurred by an Employee can be claimed as an Itemised Deduction, These include, Uniform Expenses- During Course of Employment, Protective Clothing Expense-Used in Course of Employment ect. Travel and Food Expenses can also be claimed as a deduction, Provided they are incurred in Course of Employment and not reimbursed by the employer.
Self Employment Deductions are Shown as an Adjustment to Gross Income.
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