Category Archives: Deductions

IRA Contributions Facts

Investing in your retirement is important. When it comes to saving for your future, you have a multitude of options. One option, the Individual Retirement Arrangement (IRA), factors in at tax time regarding contributions that you make. Since this is a popular retirement plan, you should be aware of the following seven facts in order […]

Do you regularly make donations to charitable organizations? It feels great to help out those in need, and you can even get a benefit at tax time in the form of a deduction. In some cases, you may be eligible to deduct your donation from your taxes. The following facts can help you determine if […]

Generally, it is easier to just choose the standard deduction when filing your tax return, however it may not be the best method for saving you money. In some cases, opting to itemize your deductions can actually lower the amount of taxes you owe. The best option is to determine the amount you will save […]

If you donate to a charity, you may be eligible for a tax deduction. In order to deduct the amount, you’ll need to keep records of each contribution you make. You should always have a hard copy record as proof of your deduction. This proof can include: A canceled check A monthly bank statement showing […]

Sometimes, you may find yourself having to travel for work purposes. If you are not self-employed, and you work for a company or business, you may incur expenses while traveling. While it is possible to recoup your expenses by taking a tax deduction, you may find it more pertinent to seek reimbursement from your employer. […]

An Interest-ing Deduction

If you choose to itemize your deductions by filling out a Schedule A, then you are eligible to deduct interest paid on a mortgage loan. Deductible mortgage interest falls into two categories: Interest for loan that was used to perform renovations on a primary or secondary residence, and the loan is backed by the property. […]

Any costs that you incur relating to diagnosing curing treating or preventing illnesses or diseases are considered medical expenses. They can relate to any specialty of the body and can also include amounts paid for fee to doctors, dentists, surgeons, and other staff who provided medical care. In addition, medical expenses can also include the […]

There are limits on some itemized deductions depending on type. In most cases, limits are calculated based on a percentage of the taxpayer’s adjusted gross income (AGI). To figure out what you’re eligible to deduct within the limitations, you can subtract the corresponding percentage of your AGI from the total amount of your expense. Miscellaneous […]

If you’re married but file separately from your spouse, you’ll be required to use the same deduction method as the other party. This means if your spouse chooses to itemize, you too will have to itemize your deductions and you will not qualify for the standard deduction. You may need to claim a separate returned […]

It may seem like it takes a little more effort to itemize your deductions, but doing so can save you a tax time. By itemizing your deductions, you list all of your expenses and what you’ve paid on a Schedule A, which you file with your Form 1040. There are a range of expenses that […]