Sy Accountancy Corporation

704 Mira Monte Place, Pasadena, California 91101

Tel (626) 744-0200, Fax (626) 744-0300, vsy@victorsycpa.com

AVERAGE ITEMIZED DEDUCTIONS

By Victor Sy, CPA, MBA

For those of you who itemize, the table below should be of special interest.

For those of you who play the odds (you know what I mean), this table should be of very special interest.

Having claimed too many exemptions at work to increase your take-home pay, you suddenly find yourself owing Uncle Sam a great deal of money.

Before your creativity takes you to the skies, keep your cool and check this table out. It could save you a letter of invitation to visit the IRS.

The table shows the latest available average deductions taken by taxpayers in different groupings of Adjusted Gross Income (AGI).

For example, a taxpayer with an Adjusted Gross Income (AGI) of $37,000 deducted an average of $5,355 of medical expenses, $3,332 of state and local taxes, $6,979 of interest, and $2,066 of contributions.

AVERAGE ITEMIZED DEDUCTIONS FOR VARIOUS INCOME LEVELS*

Adjusted Gross Medical

Income Ranges Expenses Taxes Interest Contributions

Under $15,000 7,818 2,459 6,834 1,443

15,000 to 30,000 6,382 2,442 6,844 2,020

30,000 to 50,000 5,355 3,332 6,979 2,066

50,000 to 100,000 5,651 5,464 8,448 2,666

100,000 to 200,000 10,515 10,042 11,350 4,000

200,000 or more 25,719 36,354 20,381 18,011

Note that these are averages for the whole United States. Mortgage interests in California, Hawaii, and New York would be much higher.

Again, these averages are for your guidance. Do not claim these amounts if you do not have documents to support your deductions.

* Based on latest available figures for 2003