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Itemize / AMT
Locations / Rates
Locations / Rates
Tax Tables
Earned Income Credit
Business Expenses
Itemize / AMT
Common Mistakes / FAQ
Tax Poem
2008 Flyer

Cash and NonCash Donations require receipts and must be accurate.  Excessive donations will be probably be challenged for tax year 2007.  Example: You donate a shirt or blouse and declare it to be worth $10, and the location you donated it to sells it for $3.

A tax return isn't suppose to be fiction in numerical form.  Keep all your receipts, even if they have to be put in a shoebox.


Which has a better return (on your investment), to itemize or not?
Surprise, by not using Schedule A will give you a better return (for investment) than actually using Schedule A.  Example:  Say you are single and your total itemized deductions add up to $3,250.  You would take the standard deduction given by the IRS of $5,000 since it exceed what you have by $1,750.  This means you received $1,750 in deductions FREE.  Now lets say your deductions are $8,000.  Since this exceeds the standard deduction given by the IRS of $5,000 you use the $8,000 amount.  With the above example the first example of not being able to itemized received $1,750 in deductions free, however, the second example received NO free deductions.

Standard Deductions for  2007

Your filing status is...
Base Amount
Married Filing Joint
Married Filing Separate
Head of Household
Qualifying Widower with Dependent Child
Additional amounts for legally blind
Additions over 65.

Did you know that in some cases when you exceed the standard deduction and itemize you may actually be losing money ?

Exemption Amount for 2008

Checklist for Schedule A (& form 2106)
To Use  Schedule A you usually need to exceed the standard deduction for your filing class. 

Only amount over 7.5% of AGI is Used
Private Party Interest (need Name, SSAN, & Address)
Insurance Premiums
Long Term Care Contracts
Total Cash (Dollars) Donations
Prescription Drugs/Insulin
Total Other Donations (cloths, furniture, etc.)
Total Charitable Miles Driven
List Item, Date, and Dollar Loss (In general loss must exceed 10% of your income plus $100.  Also, loss carries to Schedule A)
Only amount over 2% of AGI is used
Nursing Help
Total Miles Driven (Jan 1st to Dec 31st)
Qualifying Equipment
Amount of Total Miles Used for Business
Total Medical Miles
Parking Fees, Tolls, Train, Bus, Etc.
Overnight Travel Expenses (use per diem)
State/Local Income tax (from W-2)
Meals (Overnight use per diem/State if OTR under DOT)
Home Real Estate tax paid in 2004
Cottage/Time share Real Estate Tax paid in 2004
Union Dues, Job Education, Tax Prep
Personal Property Tax paid in 2004 (this is NOT a real estate tax)
Safe Deposit Box, Allowable Attorney
Sales Tax (If you use this deduction you can NOT use the above state and local income tax deduction)
Gambling Lossess (Limited to winnings)
Home Mortgage Interest/Points
Note: Schedule A deductions used for federal purposes are NOT used in the same manner for your Wisconsin return.
Cottage/Time share Interest

* Additional Possible Medical Deductions:  Lab & X-Ray; Dentures & Braces; Hearing Aids & Batteries; Orthopedic Shoes; Canes/Crutches/Braces; Wheelchairs; On Doctors Advise: Air Conditioning, Vaporizers, Therometers & Bandages, Hot Tub, & other Doctor required items.


Burning Money and not using Deductions will....

Good news, your are allowed to recovery out-of-pocket eductional expenses.  Up to $250 off of income, and remainder on Sch. A.

Clean-fuel vehicle credits available for 2007.

"Income" per se is not what will be taxed. "Taxable Income" is what is taxed. Deductions reduce your taxable income.


Deduct Mortgage Interest, Property Taxes, & Points

You may deduct home mortgage interest and property taxes paid during the tax year. Interest on your home is duductable for a second mortgage or home equity loan up to $100,000 as long as it's for debt secured by real property. Points are fully deductible for a purchase mortgage in the year of the purchase. If you have points for a refinance, you write off the amount in equal increments over the term of the loan.

Other Deductable Expenses

You may use some closing cost which are considered part of your purchase price. Examples would be appraisal, loan application fees, and inspections.

What Expenses Are Not Deductable ?

Property taxes are deductable, however, special government fees such as street assessment, refuse collection, water and sewer bills, etc. are not deductable. Improvements to your home, home insurance, and homeowner and co-op amounts are also NOT deductable.

You Can Use IRA and Other Retirement Accounts for Home Purchase

You can take out up to $10,000 penalty-free from a IRA to buy your FIRST home. Do it within 120 days. You still have to pay income taxes on the amount. You may also deduct funds from a Roth IRA to purchase a home. 401(k) Plans may allow you to borrow up to a specified amount penalty-free to buy a house for yourself or relative. For more specific details on the above, select the IRS link on the "Resources" page, or contact the manager of your fund.

Fox Tax ~ 566 N Main St. ~ Oshkosh, WI 54901-4925 ~ Ph:(920) 235-7077 ~ www.foxtax.com