3. Choosing the standard deduction or itemized deductions

The IRS allows you to reduce your adjusted gross income by either the amount of your standard deduction based on your filling status, or by the sum

of vour itemized deductions

The following statement refers to deductions from adiusted gross income.

The government estimates a likely amount of tax-deductible expenses for each filing status to determine the standard deduction V .

The U.S. Individual Income Tax Return (Form 1040) Schedule A lists six areas of itemized deductions. Which of the following can be included in

itemized deductions? Check all that apply.

Casualty and theft losses not pald by insurance

Taxes you paid

• Gambling losses but only to the extent of gambling winnings
• Medical and dental expenses not paid by insurance in excess of 7.5% of adjusted gross income

O Unemployment compensation

The IRS allows you to reduce your adjusted gross income by either the amount of your standard deduction based on your filing status, or by the sum of your itemized deductions. The following statement refers to deductions from adjusted gross income. The government estimates a likely amount of tax-deductible expenses for each filing status to determine the standard deduction . The U.S. Individual Income Tax Return (Form 1040) Schedule A lists six areas of itemized deductions, Which of the following can be included in itemized deductions? Check all that apply. Casualty and theft losses not paid by insurance Taxes you paid Gambling losses but only to the extent of gambling winnings Medical and dental expenses not paid by insurance in excess of 7.5% of adjusted gross income Unemployment compensation