I apologize in advance for asking this because I could have swornit's been pretty recently discussed here, but my google-fu isapparently weak and I can't find the discussion.I know that for self-employment income you are required to claimall allowable business expenses, like it or not (see among other things).What about for Schedule A itemized deductions? To me it'sobvious you don't have to (after all, you always have the optionof taking the standard deduction even if your itemized deductionsare higher -- plus unlike in the SE/EIC case there's no taxbenefit to you to not claim deductions you're entitled to). ButI'd like a pointer to something official saying that (longstory).

(see other things).>In theory it should matter. Say you make 85k and take a deduction forstate income tax paid and you get a refund of state income tax paid.Next year you must report the refund as income, but suppose you make350k next year, then this refund is taxed at the highest rates. Butif you didn't take the deduction you wouldn't report the refund, andthe IRS would feel cheated. Then again, it could happen the other way-- you make 350k one year and 85k the next, and the deduction buys youa lot in the first year (assuming you're not in AMT), and adds littletax in the next year you make 85k. The logic of the link aboveimplies that you must take those deductions.

Any requirement to claim itemized deductions?

Apr 08, 2011 21 Replies

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Seth 15 years ago

"The first 20% of itemized deductions were deductible."

So if the $50,000 deduction were $10,000, the first 20% of the $10,000 (=$2,000) would have been deductible. Therefore, the _last_ $40,000 of the $50,000 led to the other $8,000 of deductions.

Seth

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D. Stussy 15 years ago

which means that the last 80% got no deduction - thus no recovery in income.

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