Video instructions and help with filling out and completing Where Form 8815 Deduction

Instructions and Help about Where Form 8815 Deduction

Music all right everyone it is noon and time for us to start our class today on employee business expenses and other miscellaneous deductions for those of you who are joining us for the first time I wanted to let you know that you do need to be on the lookout listening and looking with your eyes for three passwords that I will be putting up during today's class you need those passwords in order to pass the password test and the password test proves you attended the video either the live class I'm teaching now or that you watch the self-paced video if you're watching it as a self-paced course throughout the class today I'm going to be reading from the course manual and you can download this manual from inside our learning management system which is called open campus and you just simply need to go back to the course navigate into the course content and there is a older there that contains the course materials and that's where this manual is I will be at various times showing you answer keys as well to class work assignments and there are also homework assignments and the answer keys for class work and homework assignments are loaded in that same materials tab so during today's class if you have any questions you can chop them into the chat box and I'll answer them as I see them okay so we're on to page 2 of the manual on page 2 of the manual gets into an introduction of what itemized deductions are and how they compare to the standard deduction I'm not going to read through that today because we've covered it in earlier classes this week but I'm going to just draw your attention to one box or one extra sentence that I added to the manual which says if you decide to itemize deductions even though they are less than your standard deduction you're going to need to check a box on line 30 of schedule a and then you attach Schedule A to your return and in our earlier class we talked about reasons why you might want to itemize even though the standard deduction is a higher number and if you decide to do that because it benefits you to itemize or you need to itemize for the reasons then you would have to check that box on the schedule a otherwise iris gets confused and thinks you made a mistake and they might revert you inadvertently to the standard deduction so let's move on to the next page in the manual where we have an image of the schedule a and schedule a is of course used to claim your itemized deductions earlier in the week we covered medical and dental expenses in a one-hour class and then in a three hour class we spent about an hour each on the topics of taxes paid interest paid and gifts to charity and then today we had a class on casualty and theft losses which is another one our course by itself and finally we're going to wrap up the schedule a series with the discussion of miscellaneous itemized deductions and so we're going to be talking about the lines that appear on this part of the Schedule A and we're going to be taking a look at line 21 employee business expenses line 22 tax preparation fees line 23 other miscellaneous stuff you can deduct and then we'll also move down to line 28 where we look at miscellaneous deductions that are not a subject to the 2 percent limit and then we'll finally wrap up the day by taking a look at total itemized deductions and the limit on itemized deductions for certain filers who have income over threshold amounts and we'll also do a little bit of a summary of how that nasty nasty tax called the alternative minimum tax can take away all the hard work we do as tax preparers trying to save our clients money and when it comes to miscellaneous itemized deductions that's where the AMT comes in at its worst today we're going to be talking about all kinds of things we can do to get our clients deductions increased unfortunately many of the deductions were going to be talking about today our deductions that the AMT just steals away and all the hard work can be futile as a result so let's move on to the next page of the manual which is page 4 and we're going to begin with an introduction to miscellaneous itemized deductions just in general and expenses you incur as an employee or are related to other income productions such as investment or hobby income may be deductible as miscellaneous itemized deductions you may be able to deduct expenses you incur to produce or collect income that must be included in your gross income managed can serve or maintain property held for producing such income or to determine contest pay or claim a refund of any tax you can deduct expenses you pay for purposes in 1 & 2 right here only if they are reasonable and closely related to these purposes you can deduct expenses you paid for most common items that you see here and these include unreimbursed employee expenses for car travel meals entertainment and education job search expenses union dues tax advice and preparation fees safe deposit rental when the box contains investment property hobby losses to the extent of hobby income and gambling losses to the extent of gambling winning there's actually a lot more things that can be deducted than what you see on this short list it's just that these are the most common ones and we're going to move on now to talk a little bit about the 2 percent limit well there are a few deductions that are not reduced by income limits most miscellaneous deductions are subject to that 2%