Ester A. D'Avilar - Page 6

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                                    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 at             






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