Discussion:Claim standard deduction, but include Schedule A anyway?

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Discussion Forum Index --> Basic Tax Questions --> Claim standard deduction, but include Schedule A anyway?


Discussion Forum Index --> Tax Questions --> Claim standard deduction, but include Schedule A anyway?

Spell Czech (talk|edits) said:

13 April 2014
I'm having a hard time thinking. Yeah, I know, that's nothing new. But the specific topic is very new. And it's about my own taxes. Or, let's say it might be about my own taxes.

My gross income requires me to file a return but my AGI is in the small triple digits. Yeah, it's $118. CDs aren't paying a lot of interest these days.

As you can guess, I don't need my itemized deductions to get my income tax down to zero. It's there already, using the standard deduction.

Here's the rub: I would like to claim, or maybe that's not the right word for it, the $11,000 of charitable contributions that I made this past year. There ought to be a carryover to next year of all but the $59 [half of my AGI] of the charity that's deductible - or would be deducted if I were to itemize - this year. I forget the name for it, but there's this 50%-of-AGI limitation on the deduction of charitable contributions, right?

So, if I include a Schedule A with my tax return, how do I stop the IRS from thinking that I'm trying to itemize deductions, when there's no reason to itemize?

Or better, is there some reason that I *should* itemize, even though the itemized deductions, overall, are useless to me this year? Why am I trying to use the standard deduction; am I paranoid or something?

Anybody want to buy some real estate tax deductions? How about a pretty big medical deduction. And with a $2 [that's 2% of my AGI, right?] miscellaneous itemized deduction "floor" I'm pissing away a deduction for the cost of a whole bunch of investment advice books and tax prep materials, too.

I am very happy using the standard deduction this year, but I want to be able to point at something when the IRS comes back and challenges - if they do - my carryover charitable deduction of $10,942 that will show up on *next year's* return.

Thoughts? Insight? Experience? Anybody been here before?

Ckenefick (talk|edits) said:

13 April 2014
You could always point to the -10 Reg along with your charitable acknowledgement letters:

The carryover provisions apply with respect to contributions made during a taxable year in excess of the applicable percentage limitation even though the taxpayer elects under section 144 to take the standard deduction in that year instead of itemizing the deduction allowable in computing taxable income for that year.

Where I have seen the confusion with this issue is when we're talking about non-cash donations. On what year's return are we required to attach the required Form 8283? And what about that *qualified* appraisal?

Spell Czech (talk|edits) said:

13 April 2014
Yeah, I'm all on top of that. What I want is to be able to show a *signed* and *filed* return that establishes the donation in the year it was made. The documentation is meticulous, complete, and has all the right fingerprints on it.

And I hope you remember the ongoing controversy over "acknowledgment" vs. "acknowledgement"....

Ckenefick (talk|edits) said:

13 April 2014
What I want is to be able to show a *signed* and *filed* return that establishes the donation in the year it was made.

Then make a 1040 attachment. It won't be looked at, but if the IRS ever gives you a hard time about the carryforward, you can point to it. If you attach a Schedule A, I suspect the IRS might actually process it.

Spell Czech (talk|edits) said:

13 April 2014
And, peeling one more layer of the onion, what would I care - what should I care - if the IRS does process the Schedule A, if I've completed it (or even if I've *not* completed it) and their foolishness doesn't increase my tax liability?

Why am I concerned about the possibility that IRS might process the Schedule A? Is it because the IRS would thereby violate my anal-retentive and obsessive need to be in control?

Ckenefick (talk|edits) said:

13 April 2014
The big assumption here is that you are not claimed, by someone else, as a dependent on their return.

Nilodop (talk|edits) said:

13 April 2014
File with standard deduction. Attach a statement (not a Schedule A) that has all the necessary info - all - to support the 170 deduction, and recognize, as Ck says, that they will not read it. Your statement should say: I hereby opt, choose, elect, select and decide upon the standard deduction for my 2013 return. I gave a bunch of charitable contributions that might some day affect my tax liability, but not for 2013. Here they are. Please don't bother me about them just yet.

Guya (talk|edits) said:

13 April 2014
But...I do have client with cancer who has had very little income because of her illness and we are including Schedule A showing real estate taxes and medical bills even though she does not itemise; because when the IRS consider her offer in compromise we want them to be able to see she has no money left to pay anyone including the IRS.

I don't expect anyone to read this until the OIC is processed.

Ckenefick (talk|edits) said:

13 April 2014
Well, that will be a little helpful, but IRS will require financial statements anyway.

Spell Czech (talk|edits) said:

13 April 2014
I still can't figure out why I want to not claim [yeah, that's a split infinitive, but it's **correct** damn it] my itemized deductions. Am I being weird about this? Do you feel my subtle angst?

Ckenefick (talk|edits) said:

13 April 2014
Are you, or are you not, claimed as a dependent on someone else's return?

If you are, and if the $118 is Ordinary [or STCG], you would have a tax liability if you *(s)elected* to itemize. So, that would be one reason why you would not want to itemize, since it would cost $6 in tax to itemize.

I do wonder, though...can you *elect* to *not* claim the *standard* deduction and also elect to *not* itemize?

Is that a possibility or are you *FORCED* to take one or the other?

Spell Czech (talk|edits) said:

13 April 2014
I'm not following this. In addition to the $58 of deductible charity, I've got thousands and thousands of dollars of itemized deductions that I am kicking myself for not being able to use against income because I have such little income and now you tell me that if I am somebody's dependent and if I (s)elect to itemize that I will owe the gummint $6. Please tell me there's some confusion here.

Ckenefick (talk|edits) said:

13 April 2014
I've got thousands and thousands of dollars of itemized deductions

If that's the case you wouldn't owe anything. I was thinking $118 minus $59 equals $59...times the tax rate.

Spell Czech (talk|edits) said:

13 April 2014
Whew.

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