Smith Conley & Associates, PC
  • Email
  • Facebook
  • Google+
  • Linkedin
  • Twitter
  • RSS
Follow us on
  • Home
  • Articles
    • For Individuals
    • For Business
    • Tools
    • Estate Planning
    • Tax Humor
    • All Articles
    • Step into the batting cage with us!
  • Answers!
    • Answers
    • Services
    • Asset Protection
    • Uses for your SCA portal
  • Portal Login
  • Contact Us
  • Free Text Alerts
  • Featured Clients
Navigation
Search the site...

Does it ever pay to be just average?:

Sometimes it's ok to be average.

0
Calculator displaying the word average

I always taught my kids to never settle for being average. Mathematically, average is the best of the worst and the worst of the best. However, there are some occasions that it’s helpful to know  the range of  average deductions for your income level. 

Even though there is no “average” amount that IRS will allow you without proper documentation, it can be a helpful indicator that you may have missed giving us some information.

Toward that end, we’ve obtained the latest data from IRS on average itemized deductions. IRS calculated the average a little differently from how you or I would. For example, in the Medical category, only returns with an amount on Schedule A for medical expense are included. In essence, IRS uses the median value of all the returns that have an amount for the deductions listed in the table below. The higher your income, the more the amounts tend to approach the arithmetic mean or average.

Remember that you’re not bound by these numbers if your receipts and documentation are greater. As long as you can prove the numbers, you should claim every dollar of every deduction on your return.
As one of my favorite judges once stated:

“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury.
There is not even a patriotic duty to increase one’s taxes.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands.”
-Judge Learned Hand (1872-1961) Judge US Court of Appeals

 

AGI Medical Taxes Interest Contributions
under
$15,000
$8,675 $3,231 $6,979 $1,501
$15,000
to $30,000
$7,688 $3,310 $7,190 $2,184
$30,000
to $50,000
$6,939 $3,932 $7,047 $2,404
$50,000
to $100,000
$7,988 $6,201 $8,310 $2,990
$100,000
to $200,000
$9,634 $10,848 $10,399 $3,939
$200,000
to $250,000
$17,667 $17,556 $13,344 $5,667
$250,000
or more
$33,521 $49,986 $18,786 $22,001

Related Posts

  • The one time that it’s good to be averageThe one time that it’s good to be average
  • When it’s OK to be averageWhen it’s OK to be average
  • Special Tax Deductions for Special Education via the WSJSpecial Tax Deductions for Special Education via the WSJ
  • The 4 Ways to Grow Your BusinessThe 4 Ways to Grow Your Business
  • Year-end Tax PlanningYear-end Tax Planning
  • Free at last! Free at last!Free at last! Free at last!
  • Author
  • Recent Posts
Follow us
David Conley
David is a partner at Smith, Conley & Associates, PC. In addition to writing and tax consulting, he is active in the pro-life community serving as President of the Fayette County Right to Life chapter of Georgia Right to Life.
He is also a founding Board Member and Finance Director of the Fayette Pregnancy Resource Center and serves on the Board of the National Equal Rights Institute.
Follow us
Latest posts by David Conley (see all)
  • Estate Planning under the Biden Administration:

    What's changing and how to react

    - April 7, 2021
  • Thanksgiving Items - November 25, 2020
  • Do you receive Social Security, Civil Service, or VA Benefits:

    There's some good news and some bad news

    - November 23, 2020
average, deductions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


By submitting this form, you are consenting to receive marketing emails from: Nichols, Cauley & Associates, LLC, 135 Brandywine Blvd Ste A, Fayetteville, GA, 30214, http://www.cpatax.net. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  • rickviall
  • joey
  • spowell
  • seneyfooter1
  • dondychefacebook1
  • rickviall
Copyright SCA @2016