What are some common tax deductions?

Question

I recently bought a house, so I now itemize my tax returns. My finances are very simple. Can I write off student loan interest? medical expenses not covered by insurance? I do charitable donations, but am trying to get more creative. What about work clothes (suits)? Laptop (if I use it for work from time to time)?

Answer 1

The itemized schedule of deductions form will walk you through the possible deductions you can take. You can deduct interest paid on your home, but not other interest. You can deduct medical expenses that you paid out of pocket, but only to the extent that they exceed 7.5% of your adjusted gross income. Charitable donations are allowed. Work clothes are only deductible if they could only be worn in your job. (So most uniforms are deductible, regular clothing you could wear off the job is not deductible). Work expense, such as computer or home office has to be completely for work only in order to deduct. There are also some rather specific things, such as self-employed health insurance premiums, some student loan interest, certain qualifying child care expenses.

With a simple finance situation, you can easily do this by yourself if you read the instructions.

Answer 2

The student loan interest writeoff doesn't require you to itemize.

In addition to your real estate taxes and mortgage interest, if you live in a state with state income tax you'll show that and any local taxes - otherwise, at least this year, you can take a deduction for sales tax paid - you don't have to have receipts, there's a table for how much you're allowed to deduct without proof.

Medical expenses only count for the amount that exceeds 7.5% of your income, so most people don't get anything there. Charitable donations can generally be deducted up to a certain amount, if you have documentation. Suits you wear only to work could probably NOT be deducted. Laptop used for work from time to time - probably not.

There are a number of other things you might also be able to take. Look at the instructions for form 1040 schedule A. You'll find them on irs.gov.

Answer 3

Anything you use in your work can usually be deducted. If you use your car in your work, that may be deducted. A computer, printer and supplies may be deducted if used in your work. Mortgage interest, points, etc., may be deducted as well as a portion of your home expense if you have an office at home. Student loan interest in deductible If you travel in your work, you can deduct travel expenses. A percentage of medical and prescription expense can be deducted. If you look at the tax form and read through the tax instructions, you should come up with a number of things you can deduct. You can deduct any charitable giving, including clothing. Make sure to keep all receipts.

Answer 4

Typical deductions for itemizing are mortgage interest, property taxes, state income taxes, medical expenses (if they exceed 7.5% of your adjusted gross income.) Donations are deductible, but "creative" deductions may raise a red flag at the IRS. Work clothes such as uniforms are deductible, but just a regular suit probably isn't. I've always heard if the clothes are the type to be worn outside the workplace, then they aren't deductible. Some business related expenses are allowable (I think they have to exceed 2% of adjusted gross income) such as union dues, the laptop could probably qualify as partially deductible (part business/part personal), but be prepared to have documentation in case of an audit. You can get a copy of Scheule A from the IRS website or your local library may have tax forms, too.

Answer 5

In asserting you ar a contractor, you advance a pink flag that shows up a pair circumstances an afternoon a minimum of. I actually have a canned clarification to curiously clueless self reliant contractors: some employers attempt to get round paying employment taxes (social protection and unemployment) and different worker advantages like workers repayment coverage by using improperly classifying workers as self reliant contractors. the standard concern is the quantity of administration the corporate has over the worker. if you're required to take position for paintings--personally--at a particular time, punch the clock, use the corporate’s kit and are paid an hourly fee, or yet another set fee in accordance with time served, you're an worker. in case you probably did not understand the adaptation once you posed your question, i'd be even more desirable confident that you're an worker. what's your selection, Slotted or Phillips? finished an IRS type SS-8 to get an reliable ruling on your status. this would help you get unemployment in case you get fired. once you report your income tax go back, you could connect type 8919 Uncollected Social protection and Medicare Tax on Wages and really pay the corporate's 0.5 of social protection. you'll nonetheless ought to cough up each of the income tax. IRS and the states are stepping up enforcement in this abuse section.

Answer 6

Your tax preparer can give you a whole list of items that are deductible if you have the paperwork.

Be careful, though. Medical expenses are only deductible if it super cedes a certain percentage of your income. Check to see what that amount is for you specifically.

If you set aside a room in your house for work only, the square footage of that room will equal a certain percentage of your house payment, electric bill, property taxes, etc.

But like I said, check with your Tax Preparer.

Also, the federal government has a website that offers free information - one of which is allowable deductions.

Answer 7

http://irs.org will give you specifics. Generally to get creative - start a business. Then you can write off almost everything. For example, your corporation could provide you with living expenses as an executive perk and part of your compensation. This moves your entire living account to the deducable (to your company) catigory.

On the funny side I've heard of pets being claimed as members of the family. They really are you know.....

Answer 8

i don't know very sorry