Schedule L

AAA

DEFINITION of 'Schedule L'

A form attached to Form 1040 that is used to calculate the standard deduction for certain tax filers. Schedule L is only used by taxpayers who are increasing their standard deduction by reporting state or local real estate taxes, taxes from the purchase of a new motor vehicle or from a net disaster loss reported on Form 4684.

INVESTOPEDIA EXPLAINS 'Schedule L'

Refunds and rebates already received on real estate taxes reduce the amount of additional standard deduction for which a taxpayer may be eligible. With regards to motor vehicles, taxpayers in states that do not charge sales tax but levy another fee on the purchase of a new vehicle can treat those fees as a tax for the purpose of this form.


Taxpayers should check to see if an increased standard deduction will provide the same tax benefit as itemizing deductions.

RELATED TERMS
  1. IRS Publication 547

    A document published by the Internal Revenue Service (IRS) that ...
  2. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Sales Tax

    A tax imposed by the government at the point of sale on retail ...
  5. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  6. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
Related Articles
  1. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

  2. An Overview Of Itemized Deductions
    Taxes

    An Overview Of Itemized Deductions

  3. Tax Deductions You May Be Missing
    Taxes

    Tax Deductions You May Be Missing

  4. The History Of Taxes In The U.S.
    Taxes

    The History Of Taxes In The U.S.

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center