Monday, October 01, 2007 7:19 PM
Itemized deductions vs. allowable deductions?
Itemized deductions are all the potential tax reductions – charitable contributions, mortgage interest — you’ve accumulated over the year. But the amount you’re allowed to deduct (cleverly titled “allowable deductions”) depends on your income. As you earn more money, the percent of the itemized deductions you can declare begins to decrease. The IRS maintains a schedule. You see, Tax Day is perhaps the only 24-hour period where people moan, “Oh, I make too much money.” Not to worry, this feeling tends to subside April 16th.