FOR those of you who itemize, the table below should be of special interest.
For those of you who play the odds (you know what I mean), this table should be of very special interest.
Having claimed too many exemptions at work to increase your take-home pay, you suddenly find yourself owing Uncle Sam a great deal of money.
Before your creativity takes you over, keep your cool and check this table out. It could save you a letter of invitation to visit the IRS.
The table shows the latest available average deductions taken by taxpayers in different groupings of Adjusted Gross Income (AGI).
For example, a taxpayer with an Adjusted Gross Income (AGI) of $37,000 deducted an average of $7,192 of medical expenses, $3,950 of state and local taxes, $7,976 of interest, and $2,285 of contributions.
Note that these are averages for the whole United States. Mortgage interests in California, Hawaii, and New York would be much higher.
Again, these averages are for your guidance. Do not claim these amount if you do not have documents to support your deductions.
* Based on latest available figures for 2010.
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Victor Santos Sy, CPA, MBA, provides professional services in accounting and tax controversy including IRS audit defense and offers in compromise. He also advises clients on choices of entity including corporations for small businesses and LLCs for rentals. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation at 704 Mira Monte Place, Pasadena, CA 91101. The firm celebrates its 35th anniversary this year. You may email tax questions to Vic at [email protected]. You are welcome to visit our website for more than 300 tax tips at www.victorsycpa.com.