DESCRIPTION
This module provides a comprehensive overview of the standard deduction and itemized deductions, with a detailed focus on each section of Schedule A. Participants explore common itemized deduction categories through practical application. Participants will identify deductible state taxes using realistic client data and compute the mortgage interest limitation under different scenarios. By the end of the module, participants are better equipped to accurately compute allowable deductions and make informed decisions when preparing individual tax returns.
LEARNING OBJECTIVES
- Differentiate between the standard deduction and itemized deductions, including when each is most advantageous for a taxpayer.
- Identify the major categories of itemized deductions reported on Schedule A and the types of expenses included in each category.
- Apply the SALT deduction cap to client fact patterns to determine the deductible amount.
- Calculate mortgage interest deductions under different circumstances, including limitations.
