Tax Question.

[skidoo]

Now that the OP has his answers, I have one.

For the itemized deductions, schedule A, is there any requirement to claim 100% of your expenses, taxes, mortgage interest, charitable gifts, etc.? In other words, can you claim say just 2/3 of your property taxes and none of your mortgage interest if you so desire?

 

[wabower]

Is that the same as asking if the IRC includes a penalty for knowingly overpaying ones FIT? If the return were selected for audit, would the examiner check to see if TP claimed all deductions to which it was entitled? If so, would the examiner file a return adjusted for the foregone deductions? Would somebody from the IRS check to be sure TP cashed the check? What if TP elected to have the current year refund applied to next years tax liability?

Now that the OP has his answers, I have one.

For the itemized deductions, schedule A, is there any requirement to claim 100% of your expenses, taxes, mortgage interest, charitable gifts, etc.? In other words, can you claim say just 2/3 of your property taxes and none of your mortgage interest if you so desire?

 

[skidoo]

Is that the same as asking if the IRC includes a penalty for knowingly overpaying ones FIT? If the return were selected for audit, would the examiner check to see if TP claimed all deductions to which it was entitled? If so, would the examiner file a return adjusted for the foregone deductions? Would somebody from the IRS check to be sure TP cashed the check? What if TP elected to have the current year refund applied to next years tax liability?

Yes, those are the questions I am basically asking. It is related to the AMT. At some point claiming more in deductions result in higher taxes due to the AMT. So, is it reasonable and legal to claim less deductions than you are allowed to claim?

 

[michael Killacky]

Now that the OP has his answers, I have one.

For the itemized deductions, schedule A, is there any requirement to claim 100% of your expenses, taxes, mortgage interest, charitable gifts, etc.? In other words, can you claim say just 2/3 of your property taxes and none of your mortgage interest if you so desire?

Not sure about Schedule A, however, when I was audited for 2005 and 2006, I gave the auditor $2000 dollars worth of receipts (apartment house maintenance) for 2005 and explained to her that I didn't include them that year because my rent-expenditure ratio was so low, I worried about getting audited. I told her that as long as they got me anyway, I might as well deduct this stuff, too. She never batted an eye and added them right into my losses.

As far as Greg's original question, IIRC, every exemption makes $140 (figuring bi weekly pay) tax-free, as far as take-home pay. So somewhere around $3600 per year per exemption.