What is itemizing and is it beneficial to me?

Itemization is the process of listing specific deductible personal expenses you paid during the year including but not limited to medical and dental care, state and local income taxes, real estate taxes, home mortgage interest, and gifts to charity. Such a list would appear on Form 1040, Schedule A, Itemized Deductions.

When you complete your list, you total the amount spent and compare the total with your standard deduction. Generally the larger of the two deductions, standard or itemized, will be the deduction to choose, since it will lower the amount of federal income tax you will owe. For additional information, refer to Tax Topic 501, Should I Itemize?

References:

• Form 1040, Schedule A, Itemized Deductions
• Tax Topic 501, Should I Itemize?
• Publication 17, Your Federal Income Tax For Individuals

My spouse and I are filing separate returns. How can we split our itemized deductions?

If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. Therefore, the other spouse should also itemize deductions.

You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your spouse. Deductible expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. If these expenses are paid from community funds, the deduction may depend on whether or not you live in a community property state. In a community property state, the deduction is, generally, divided equally between you and your spouse. For more information refer to Publication 504, Divorced or Separated Individuals; and Publication 555, Community Property.

References:

• Publication 504, Divorced or Separated Individuals
• Publication 555, Community Property

I am in a disaster area and heard the IRS could help me. What can the IRS do?

If you have been affected by a Presidentially declared disaster, the IRS may help you by allowing additional time for filing returns and making payments, and in some circumstances, waiving penalties if the disaster has caused you to file or pay late. The IRS may also, provide copies or transcripts of previously filed returns, free of charge. You may be eligible to file for a casualty loss deduction on the prior year's tax return, or if you have already filed, by amended return (Form 1040X). For additional information on this subject, refer to Tax Topic 515, Casualty, Disaster, and Theft Losses, and Publication 547, Casualties, Disasters, and Theft.

References:

• Publication 547, Casualties, Disasters, and Thefts
• Tax Topic 515, Casualty, Disaster, and Theft Losses

Are expenses for smoking cessation programs deductible?

You can include in medical expenses amounts you pay for a program to stop smoking. Unreimbursed amounts you pay for participation in a smoking cessation program and for prescribed drugs designed to alleviate nicotine withdrawal are expenses for medical care that are deductible subject to the 7.5% of adjusted gross income limitation if you itemize deductions on Form 1040, Schedule A, Itemized Deductions. However, you cannot include in medical expenses amounts you pay for drugs that are designed to help stop smoking that do not require a prescription, such as nicotine gum or patches.

For more information, see Publication 502 , Medical and Dental Expenses, or Revenue Ruling 99-28, which explains the deductibility or smoking-cessation programs. Revenue Ruling 99-28 is in Internal Revenue Bulletin 1999-25, dated June 21, 1999.

References:

• Publication 502 , Medical and Dental Expenses