- 5 - Discussion As noted above, petitioner now agrees that she underreported her wages from the City of New York on her 2000 return. She now challenges respondent’s refusal to adjust the deficiency here in dispute to take into account the deductions claimed on the Schedules A and C attached to her amended return. 1. Itemized Deductions In computing an individual’s taxable income, the individual may elect to itemize deductions. Sec. 63(b), (d) and (e). The election is made on the individual’s return. Sec. 63(e)(2). In the absence of such an election, the individual’s taxable income is computed with reference to the standard deduction. Sec. 63(b) and (c). Here, petitioner did not elect to itemize deductions on her 2000 return, but she elected to do so on the amended return. This she is entitled to do. Sec. 63(e)(3); sec. 1.63-1(a), Income Tax Regs. Nevertheless, she is required to substantiate the deductions claimed on the Schedule A included with the amended return. Sec. 6001; Hradesky v. Commissioner, 65 T.C. 87, 90 (1975); affd. per curiam 540 F.2d 821 (5th Cir. 1976); sec. 1.6001-1(a), Income Tax Regs. Furthermore, to have any consequence here, the total of the allowable itemized deductions must exceed the standard deduction; i.e., $6,450. Mathematically, the itemized deductions claimed on the Schedule A can exceed the standard deduction only if all, or atPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011