What is itemization?

Many people are unaware of their choice to choose an itemized deduction as an eligible expense for U.S taxpayers but these can be decreased from their taxable income. There are a range of expenses that are not deductible.  It’s up to you to decide uif you want to choose standard deductions or itemized deductions. Beward, only taxpayers who are eligible for standard deductions can choose to itemize. These itemization deductions are capital expenditures, payments to doctors, surgeons, dentists, chiropractors, psychologists, counselors, physical therapists, osteopathy, podiatrists, home health care, nurses, cost for care for chronic cognitive impairment, premiums for medical insurance, premiums for qualifying long-term care insurance, payments for prescription drugs and insulin, payments for devices needed to treat or compensate for a medical condition, mileage for travel to and from doctors and medical treatment and necessary travel expenses.

Another itemized deduction is the mortgage interest you pay for your home. This is limited up to mortgages on two homes in addition to your state and sales taxes or local income, property taxes and charitable donations. Medical and dental expenses that exceed 7.5% of your adjusted gross income are also allowed to be itemized as deductions. It’s also important to remember that some medical expenses are not included in this, including health club memberships, cosmetic surgery and over-the counter medications. Income taxes can be filled out using Form 1040 and you must list these itemized deductions in order to claim them.

So is itemization the right choice for you? Just to clarify, itemizing means giving up standard deduction. First you must add up all the possible itemized deductions and see if this total is greater than what your standard deduction for your filing status will be. This might mean that you benefit greatly from itemizing because you can go on to claim a larger deduction than the deduction you would have been able to claim via standard deduction.

Did you know that charitable donations provide a tax benefit? It’s true! In fact this type of giving has grown more and more popular over the years. A great way to donate to a charity is by giving them your old car. First, it gets rid of something you are no longer using and declutter your house. It also can be a great tax deduction. For car values that are less than $500, its up to the owner to estimate the value of the car. Even if the charity sells the car for less money the deduction is based on the estimation of the owner. What if your car is valued for more than $500? There is a limited to the sale amount of a vehicle at auction.

Donating your car might incline you to itemize your tax deductions, and benefit greatly from this. Charities in the US are starting to rely on the revenue from car donations. Interested in donating your car to a charity? The Neshama Foundation is an example of a non-profit organization that has jumped on the bandwagon (no pun intended) in accepting and relying on car donations. As a non-profit they provide support to children’s charities in Israel.

Consider donating your car to The Neshama Foundation. Neshama  is a non-profit organization that is dedicated to providing support to charities in Israel. They fundraise in the United States and provides 100% of the donations that provide support for Israeli children. The process of donating your car is extremely simple! Just pick up the phone, call Neshama and they will schedule a time to tow it away. For more information visit: http://www.neshamafoundation.org