If you incur the same medical expense or other deduction on a regular basis, you can have DeductionPro enter all these deductions at once instead of entering each one manually. We call this a recurring deduction.
To set up a recurring deduction for a medical or other expense:
On the Enter Deductions tab, click Medical & Other Deductions, and then click New Recurring Deduction.
From the Category drop-down list, select the category that best fits the expense.
Note: If none of the categories listed apply, choose Other or Other Schedule A, Line 23 Items.
Choose Other only if the item is:
A casualty and theft loss of income-producing property
Federal estate tax on income in respect of a decedent
Amortizable bond premium on bonds acquired before October 23, 1986
Deduction for repayment of amounts under a claim of right if over $3,000
Certain unrecovered investment in a pension or impairment-related work expenses of a disabled person (see IRS Publication 529 for more details)
Choose Other Schedule A, Line 23 Items if the item is subject to the 2% of AGI limitation, when it is paid to produce or collect taxable income and manage or protect property held for earning income (i.e., not personal expenses).
Such items might include:
Certain legal and accounting fees
Clerical help and office rent
Custodial (for example, trust account) fees
Your share of the investment expenses of a regulated investment company
Certain losses on nonfederally insured deposits in insolvent or bankrupt financial institutions
Casualty and theft losses of property used in performing services as an employee
Deduction for repayment of amounts under a claim of right if under $3,000
In the Start Date box, type the date (in mm/dd/yyyy format) on which you first paid the expense.
Tip: You can also click the calendar icon beside the box to display a calendar from which you can select a date.
In the End Date box, type the date (in mm/dd/yyyy format) on which you last paid the expense.
From the Frequency drop-down list, select the option that describes the frequency of your recurring deduction.
In the Description box, type a description of the expense that you incurred (up to 25 characters).
Tip: Use this field to keep notes that have enough detail to remind you of why you incurred the expense in case the IRS questions your deduction.
In the Amount box, type the dollar amount of the expense, and then click Finished.
DeductionPro automatically:
Calculates the total amount of the recurring expense for you and displays it in the Amount box.
Saves your entry and updates Total Deductions and Est. Tax Savings when you leave the row.
To enter another deduction, click either New Deduction or New Recurring Deduction.
To print the list of medical and other deductions, click Print. When the Print Preview window appears, click the printer icon, and then click OK in the Print dialog box.
Tip: To print the details of a recurring deduction, click the Recurring button beside the deduction for which you want to print the details before you click Print.
When you’re done entering medical and other deductions, click Save.
Note: DeductionPro automatically saves the entry as you complete each row. However, you must click Save to save the information entered in the last row.