Table of Contents

• 20.   Standard Deduction
  • What's New
  • Introduction
  • Standard Deduction Amount
  • Standard Deduction for Dependents
    • Earned income defined.
  • Who Should Itemize
    • When to itemize.
    • Married persons who filed separate returns.
    • 2005 Standard Deduction Tables
• 21.   Medical and Dental Expenses
  • What's New
  • Reminders
  • Introduction
  • Useful Items - You may want to see:
  • What Are Medical Expenses?
  • What Expenses Can You Include This Year?
    • Community property states.
  • How Much of the Expenses Can You Deduct?
  • Whose Medical Expenses Can You Include?
    • Spouse
    • Dependent
    • Decedent
  • What Medical Expenses Are Includible?
    • Insurance Premiums
    • Meals and Lodging
    • Transportation
    • Disabled Dependent Care Expenses
  • How Do You Treat Reimbursements?
    • Insurance Reimbursement
  • Damages for Personal Injuries
  • How Do You Figure and Report the Deduction on Your Tax Return?
    • What Tax Form Do You Use?
  • Impairment-Related Work Expenses (Business or Medical)
  • Health Insurance Costs for Self-Employed Persons
• 22.   Taxes
  • Reminder
  • Introduction
    • Indian tribal government.
  • Useful Items - You may want to see:
  • Tests To Deduct Any Tax
  • Income Taxes
    • State and Local Income Taxes
    • Foreign Income Taxes
  • General Sales Taxes
  • Real Estate Taxes
    • Real estate taxes for prior years.
    • Examples.
    • Form 1099-S.
    • Real Estate-Related Items You Cannot Deduct
  • Personal Property Taxes
  • Taxes and Fees You Cannot Deduct
  • Where To Deduct
• 23.   Interest Expense
  • Reminders
  • Introduction
  • Useful Items - You may want to see:
  • Home Mortgage Interest
    • Amount Deductible
    • Points
    • Mortgage Interest Statement
  • Investment Interest
    • Investment Property
    • Allocation of Interest Expense
    • Limit on Deduction
  • Items You Cannot Deduct
    • Personal Interest
  • Allocation of Interest
  • How To Report
    • More than one borrower.
    • Mortgage proceeds used for business or investment.
• 24.   Contributions
  • What's New for 2005
  • Reminders
  • Introduction
  • Useful Items - You may want to see:
  • Organizations That Qualify To Receive Deductible Contributions
    • Types of Qualified Organizations
  • Contributions You Can Deduct
    • Contributions From Which You Benefit
    • Expenses Paid for Student Living With You
    • Out-of-Pocket Expenses in Giving Services
  • Contributions You Cannot Deduct
    • Contributions to Individuals
    • Contributions to Nonqualified Organizations
    • Contributions From Which You Benefit
    • Value of Time or Services
    • Personal Expenses
    • Appraisal Fees
  • Contributions of Property
    • Deduction more than $500.
    • Exception 1—vehicle used or improved by organization.
    • Exception 2—vehicle given or sold to needy individual.
    • Deduction $500 or less.
    • Right to use property.
    • Future interest.
    • Determining Fair Market Value
    • Giving Property That Has Decreased in Value
    • Giving Property That Has Increased in Value
  • When To Deduct
    • Checks.
    • Credit card.
    • Pay-by-phone account.
    • Stock certificate.
    • Promissory note.
    • Option.
    • Borrowed funds.
  • Limits on Deductions
    • 50% Limit
    • 30% Limit
    • Special 30% Limit for Capital Gain Property
    • 20% Limit
    • Carryovers
  • Records To Keep
    • Cash Contributions
    • Noncash Contributions
  • How To Report
• 25.   Nonbusiness Casualty and Theft Losses
  • What's New
  • Introduction
  • Useful Items - You may want to see:
  • Casualty
    • Progressive deterioration.
  • Theft
  • Loss on Deposits
  • Proof of Loss
  • Amount of Loss
    • Adjusted Basis
    • Decrease in Fair Market Value
    • Insurance and Other Reimbursements
    • Single Casualty on Multiple Properties
  • Deduction Limits
    • $100 Rule
    • 10% Rule
  • When To Report Gains and Losses
    • Disaster Area Loss
  • How To Report Gains and Losses
• 26.   Car Expenses and Other Employee Business Expenses
  • What's New
  • Introduction
  • Useful Items - You may want to see:
  • Travel Expenses
    • Traveling Away From Home
    • Tax Home
    • Temporary Assignment or Job
    • What Travel Expenses Are Deductible?
    • Travel in the United States
    • Travel Outside the United States
    • Conventions
  • Entertainment Expenses
    • Gift or entertainment.
    • Separating costs.
    • A meal as a form of entertainment.
    • Taking turns paying for meals or entertainment.
    • Trade association meetings.
    • 50% Limit
  • Gift Expenses
  • Transportation Expenses
    • Armed Forces reservists.
    • Parking fees.
    • Advertising display on car.
    • Car pools.
    • Hauling tools or instruments.
    • Union members' trips from a union hall.
    • Car Expenses
  • Recordkeeping
    • How To Prove Expenses
    • How Long To Keep Records and Receipts
  • How To Report
    • Gifts.
    • Statutory employees.
    • Reimbursements
    • Completing Forms 2106 and 2106-EZ
    • Special Rules
    • Illustrated Example
• 27.   Tax Benefits for Work-Related Education
  • What's New
  • Reminder
  • Introduction
  • Useful Items - You may want to see:
  • Qualifying Work- Related Education
    • Education Required by Employer or by Law
    • Education To Maintain or Improve Skills
    • Education To Meet Minimum Requirements
    • Education That Qualifies You for a New Trade or Business
  • What Expenses Can Be Deducted
    • Unclaimed reimbursement.
    • Transportation Expenses
    • Travel Expenses
    • No Double Benefit Allowed
  • Reimbursements
  • Deducting Business Expenses
    • Self-Employed Persons
    • Employees
    • Performing Artists and Fee-Basis Officials
    • Impairment-Related Work Expenses
  • Recordkeeping
• 28.   Miscellaneous Deductions
  • Reminder
  • Introduction
  • Useful Items - You may want to see:
  • Deductions Subject to the 2% Limit
    • Armed Forces reservists.
    • Educators.
    • Impairment-related work expenses.
    • Performing artists.
    • State and local government officials paid on a fee basis.
    • Unreimbursed Employee Expenses (Line 20)
    • Tax Preparation Fees (Line 21)
    • Other Expenses (Line 22)
  • Deductions Not Subject to the 2% Limit
    • List of Deductions
    • Officials Paid on a Fee Basis
    • Armed Forces Reservists Traveling More Than 100 Miles From Home
  • Nondeductible Expenses
    • List of Nondeductible Expenses
• 29.   Limit on Itemized Deductions
  • What's New
  • Introduction
  • Useful Items - You may want to see:
  • Are You Subject to the Limit?
  • Which Itemized Deductions Are Limited?
  • Which Itemized Deductions Are Not Limited?
  • How Do You Figure the Limit?
    • Example