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Keeping Up With Your Income Taxes All Year 
 
by kmhagen June 03, 2005

Itemized deductions

Medical and dental expenses

  • Doctors’ bills
  • Hospital bills
  • Bills for outpatient treatments
  • Receipts for medical office visits
  • Receipts for prescription medications
  • Receipts for other medical expenses allowed as itemized deductions
  • Bills for medical insurance premiums
  • Records of insurance reimbursements
  • Receipts for transportation expenses that are primarily for and essential to medical care. You can keep a diary of gas, oil, and other actual expenses directly related to that transportation, or you can keep a log of the miles you drive your car for medical purposes and use the standard mileage rate. Keep receipts for parking fees, tolls, taxi fares, and bus fares. These are deductible under either method.
  • Health Savings Account (HSA) and Medical Savings Account (MSA) - Keep a record of any qualified medical expenses you paid with a distribution from one of these accounts.

Taxes

  • Form(s) W-2 and Form(s) 1099-R for state and local income tax withheld from your wages and pensions
  • Payment vouchers and cancelled checks or other proof of payment for estimated state and local income tax payments
  • Copies of your state and local income tax returns. If you had to pay, you can deduct the tax paid. If you received a refund, you may need to include the refund in your income for federal income tax purposes. In this case you should receive Form 1099-G -Certain Government Payments.
  • Mortgage statements for real estate and personal property taxes
  • Tax assessments for real estate and personal property taxes you paid
  • Actual receipts showing general sales taxes paid, if you don’t use the optional state sales tax tables
  • Closing statement on purchase or sale of home (for real estate taxes)

Interest

  • Mortgage statements and proof of payment
  • Form 1098 - Mortgage Interest Statement, if you paid interest of $600 or more
  • Closing statement on purchase or sale of home (for points)
  • Proof of payment of investment interest

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