The standard deductions were doubled starting in 2018. That took away the ability to deduct many expenses. It was beneficial for many, but it did hurt a lot of people whose incomes are in the higher brackets. There are still remaining expenses or deductions that can help many individuals. Here is a list of 7 Tax Deductible Expenses you can take advantage of:
Charitable Contributions: If you make donations to charitable organizations, you may be able to deduct those contributions from your taxes. This includes cash donations, as well as donations of goods and property. Be sure to keep track of your donations and obtain the receipts.
Retirement Contributions: You can deduct contributions to traditional IRA, SEP IRA, and other retirement plans. Just keep in mind that taxes will be due when you withdraw funds from your retirement account in the future.
Medical Expenses: If you have a high-deductible health plan, you may be eligible to contribute to a health savings account. These contributions are tax-deductible and can be used to pay for qualified medical expenses tax-free.
Education Expenses: You can deduct the cost of tuition, fees, and other education expenses if you meet certain criteria. Teachers and other educators can deduct up to $250 of out-of-pocket expenses for classroom supplies and other educational materials.
Business Expenses: If you are self-employed, you can deduct expenses related to your business, such as home office expenses, travel expenses, and supplies.
Mortgage Interest: If you own a home and have a mortgage, you may be able to deduct the interest you paid on your mortgage for your primary residence and a second home.
State and Local Taxes: You can deduct state and local income, sales, and property taxes up to a certain amount.
These are just some examples of the deductions and expenses our office looks for when preparing taxes. If you have a complicated tax situation, we are more than happy to help with our services and answer any questions you may have. Feel free to send us an email.