CHECKLIST OF ITEMIZED DEDUCTIONS FOR SCHEDULE A (FORM 1040) MEDICAL AND DENTAL EXPENSES Medical and dental expenses (unreimbursed by insurance or otherwise) are deductible to the extent that they exceed 3% of your adjusted gross income (line 31, Form 1040). INSURANCE PREMIUMS One-half of medical, hospital or health insurance premiums are deductible (up to $150) without regard to the 3% limitation for other medical expenses. The remainder of these premiums can be deducted, but is subject to the 3% rule. DRUGS AND MEDICINES Included in medical expenses (subject to 3% rule) but only to extent exceeding 1% of adjusted gross income (line 31, Form 1040). OTHER MEDICAL EXPENSES Other allowable medical and dental expenses (subject to 3% limitation): Abdominal supports (pre- Arch supports (prescribed by scribed by a doctor) Acupuncture services Ambulance hire Anesthetist a doctor) Artificial limbs and teeth Back supports (prescribed by a doctor) Braces Capital expenditures for medical purposes (e.g., elevator for persons with a heart ailment)-deductible to the extent that the cost of the capital expenditure exceeds the increase in value to your home because of the capital expenditure. You should have an independent appraisal made to reflect clearly the increase in value. Dentures Dermatologist Eyeglasses Food or beverages specially Hearing aids and batteries Lipreading lessons (designed Nursing services (for medi cal care, including nurse's board paid by you) Occupational therapist Optician Osteopath, licensed Physical examinations Podiatrist Psychoanalyst Sacroiliac belt (prescribed by a doctor) Seeing-eye dog and mainte nance Speech therapist Telephone/teletype special equip communications ment for the deaf Transportation expenses for medical purposes (actual or 9¢ per mile plus parking and tolls; but not general repair and maintenance expenses, insurance, or depreciation in either case; or actual fares for taxi, buses, etc.) Vaccines Vitamins prescribed by a doctor (but not taken as a food supplement or to preserve general health) Wheelchairs Whirlpool baths for medical purposes X-rays Expenses may be deducted only in the year you paid them. If you charge medical expenses on your credit card, the expenses are deducted in the year the charge is made regardless of when the bill is paid. TAXES Real estate General sales State, local, or foreign income If sales tax tables are used in arriving at your deduction, ordinarily you may add to the amount shown in the tax tables the sales tax paid on the purchase of the following items: automobiles, trucks, motorcycles, airplanes, boats, mobile homes, and materials used to build a new home when you are your own contractor. When using the sales tax tables, add to your adjusted gross income any nontaxable income (e.g., Social Security, Veterans' pensions or compensation payments, Railroad Retirement annuities, workmen's compensation, untaxed portion of longterm capital gains, dividends untaxed under the dividend exclusion, interest on municipal bonds, untaxed part of unemployment compensation and public assistance payments). CONTRIBUTIONS In general, contributions may be deducted up to 50 percent of your adjusted gross income (line 31, Form 1040). However, contributions to certain private nonoperating foundations, veterans organizations, fraternal societies, or nonprofit cemetery companies, are limited to 20% of adjusted gross income. Cash contributions to qualified organizations for (1) religious, charitable, scientific, literary or educational purposes, (2) prevention of cruelty to children or animals, or (3) Federal, State or local governmental units (tuition for children attending parochial schools is not deductible). Fair market value of property (e.g., clothing, books, equipment, furniture) for charitable purposes. (For gifts of appreciated property, special rules apply. Contact local IRS office.) Travel expenses (actual or 9¢ per mile plus parking and tolls) for charitable purposes (may not deduct general repair and maintenance expenses, insurance, or depreciation in Cost and upkeep of uniforms used in charitable activities (e.g., scoutmaster). Purchase of goods or tickets from charitable organizations (excess of amount paid over the fair market value of the goods or services). Out-of-pocket expenses (e.g., postage, stationery, phone calls) while rendering services for charitable organizations. Care of unrelated student in your home under a written agreement with a qualifying organization (deduction is limited to $50 per month). Personal loan. Home mortgage. INTEREST Installment purchases (television, washer, dryer, etc.). Bank credit card-can deduct the finance charge as interest if no part is for service charges, loan fees, credit investigation fees, or similar charges. Other credit cards-you may deduct as interest the finance charges added to your monthly statement, expressed as an annual percentage rate, that are based on the unpaid monthly balance. Points deductible as interest by buyer where financing agreement provides that they are to be paid for use of lender's money and only if the charging of points is an established business practice in your area. Not deductible if points represent charges for services rendered by the lending institution (e.g., VA loan points are service charges and are not deductible as interest). Not deductible if paid by seller (are treated as selling expenses and represent a reduction of amount realized). Penalty for prepayment of a mortgage-deductible as interest. Revolving charge accounts-may deduct the separately stated "finance charge." CASUALTY OR THEFT LOSSES Casualty (e.g., tornado, flood, storm, fire, or auto accident provided not caused by a willful act or willful negligence) or theft losses the amount of your casualty loss deduction is generally the lesser of (1) the decrease in fair market |