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Ask Barbara Your Own Question
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2828
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I would like to get help with the completion of the schedule

Customer Question

I would like to get help with the completion of the schedule A document.
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: I need to complete schedule A based in the following information:
JA: Is there anything else the accountant should be aware of?
Customer: A staff tax accountant has come to you for advice. She has begun a tax return and does not know what to do with the expenses that the client has submitted as itemized deductions. She is unsure which expenses are allowable and should be included on her Schedule A. Review the expenses submitted by the client below. (Note: The client's AGI is $45,000.) Client submitted expenses:Personal property taxes
$ 500Reimbursed health insurance premiums
$ 1,500Charitable contributions (cash only)
$ 200Prescriptions
$ 150Mortgage interest
$ 3,850Contact lenses
$ 200State income taxes withheld
$ 1,675Unreimbursed medical expenses
$ 875Services provided to a qualified nonprofit
$ 1,000Real estate taxes
$ 850
Submitted: 28 days ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 28 days ago.

Dear Customer,

This looks like a homework exercise. I would suggest that we can work on this based on Schedule A. You can do a draft and we can discuss and review together after you do the draft.

I will wait for 5 minutes. If this arrangement is not agreeable with you or I don't hear back from you, I will opt out and put this posting back to the poll of questions.

Thank you.

Regards,

Fiona

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP

Expert:  Barbara replied 28 days ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Personal property taxes of $500. Need more information.

Deductible personal property taxes are only those that are based on the value of the personal property. For example, if you pay a yearly fee for the registration of your car, you may pay part of the fee for the tag and part of the fee in ad valorem tax. In fact, part of the fee, depending on your state, may even be based on other factors such as the weight of the vehicle. Only the ad valorem tax that was paid may be deducted because it is the part of the fee that is based on the value of your vehicle.

In addition, to be deductible the tax must be charged to you on a yearly basis. Even if it is actually collected more than once a year or less than once a year, it must be charged to you annually.

Reimbursed health insurance premiums of $1,500 - not deductible

Prescriptions of $150 - not deductible

Contact lenses of $200 - not deductible

Unreimbursed medical expenses of $875 - not deductible

Services provided to a qualified nonprofit of $1,000 - not deductible

Mortgage interest of $3850 - deductible

State income taxes withheld of $1675 - deductible

Real estate taxes $850 - deductible

Charitable contributions of $200 - deductible

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 28 days ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can further assist you.

Best regards,

Barb