How Do Your Tax Deductions Measure Up?

How Do Your Tax Deductions Measure Up?

It is a common misconception that you will automatically be audited by the IRS if the deductions on your tax return are above average. That's not necessarily true, as the IRS understands circumstances like high state income taxes can reflect in higher deductions. Still, have you ever wondered how your deductions measure up? The folks at the Kiplinger Tax Letter have assembled the following table of the average of several key deductions, organized by income level. (These are from 2012 tax returns.)

Adjusted Gross Income	Taxable Income	Interest Expense	Taxes Paid Deduction	Charity	Medical Expenses Deduction	Total Itemized Deductions
Under $15,000	$2,712	$6,979	$3,231	$1,501	$8,675	$15,274
$15,000-$29,999	$9,266	$7,190	$3,310	$2,184	$7,688	$15,051
$30,000-$49,999	$21,573	$7,047	$3,932	$2,404	$6,939	$15,492
$50,000-$99,999	$47,883	$8,310	$6,201	$2,990	$7,988	$19,140
$100,000-$199,999	$100,551	$10,399	$10,848	$3,939	$9,634	$26,083
$200,000-249,999	$175,943	$13,344	$17,556	$5,667	$17,667	$37,194
$250,000 & above	$641,299	$18,786	$49,986	$22,001	$33,521	$91,876

Please note that, since only medical costs above 7.5% of AGI are deductible, few people took this deduction, and the figures above represent the averages of those who did.

So how do you measure up against these averages? Are you getting all the deductions to which you are entitled? Are any of your key deductions exceptionally high or low? Wide variations from the national average may be reason to examine your deductions more closely.

For more information about itemized deductions or any other tax question, please contact the Gray, Gray & Gray Tax Department at (781) 407-0300.

From The Kiplinger Tax Letter, July 3, 2014 © 2014 The Kiplinger Washington Editors, Inc.. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

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