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.

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center