“Why isn't the amount I owe going down any more? Is there some kind of "ceiling" I have reached where no matter what else I try to deduct the number won't change”---->I guess it depends on the situation. As of tax year 2011, the standard deduction for individual taxpayers is $5,800 for single filers, and $11,600 for married couples filing jointly. If you have expenses in excess of this amount, it may benefit you to itemize your deductions on Sch A. However, the IRS phases out itemized deductions for higher income taxpayers with higher AGI. Additional restrictions apply to taxpayers subject to AMT rules. Under normal circumstances, the federal government restricts the ability of higher income earners to deduct itemized expenses. However, as of 2010, those restrictions have been temporarily lifted through calendar year 2012. On the contrary, taxpayers who make income over a certain amount may have some deductions disallowed under alternative minimum tax rules. These rules apply a tax rate of between 26 percent and 28 percent on income over a certain exemption amount, $72,450 as of 2011. AMT rules disallow certain itemized deductions, including state and local income tax and home mortgage interest. The 7.5 percent threshold that applies to medical expenses is also increased to 10 percent.Then, your taxable income/tax liability may go up.
“ or is the software not working properly???”--->I am not familiar with the tax software; perhaps you need to contact the software vendor for the software applications instruction/technical service. |