Your Average Deduction

Physician's Money Digest, July31 2004, Volume 11, Issue 14

When you fill out schedule C for your federal income tax return, how do yourdeductions stack up against others in your income group? Taxpayers with anadjusted gross income (AGI) of $100,000 to $200,000 (most doctors fall in here)had total itemized deductions of $25,768 in 2002, according to IRS statistics,including $3875 in charitable donations and $11,825 in deductibleinterest. In the year before, those with an AGI between $200,000 and $500,000donated an average of $8523 to charity and deducted an average of $19,908 ininterest. If the numbers on your return are far below the averages, it may meanthat you missed some deductions. If you find you did, you can file an amendedreturn on form 1040X, available on the IRS Web site (www.irs.gov).