![]() ![]() Specifically, you can deduct home mortgage interest on up to $750,000 of mortgage debt, property taxes, and mortgage insurance. Homeownership: The government has always encouraged homeownership, so offers deductions related to buying one.Any amount that exceeds 10 percent of your adjusted gross income can be used as a deduction. Medical and Dental: If you spent a lot of time in a doctors' offices or hospitals, add it up.Keep good records in the form of a receipt from the organization that includes the date and amount. Philanthropy: Whether you donated cash or goods to charity, the full amount (fair market value for goods) is deductible.If you decide to itemize, the following are a few not to miss. In some instances, itemizing your deductions might be a better choice but many simply opt for the standard deduction. The current rate is $12,000 for an individual or married filing individually, $18,000 for head of household, or $24,000 for a couple. Standard Deduction: this is an amount that you deduct right off the top just for being a living, breathing, tax-paying U.S. The following lists the most common deductions taken. Most people love it when they can pay less in taxes. This is a good thing, though, because it reduces your income and can move you into a lower tax bracket. Part of what makes the American tax code so complicated is the sheer number of allowed deductions. Also, if you're expecting a refund you'll need the name of your bank, checking account number, and routing number to have it directly deposited. The preceding list may be daunting but, rest assured, collecting all this information beforehand will save a lot of grief when it comes time to sit down and fill out your tax forms. Miscellaneous income (such as from jury duty or gambling winnings).Business income (if applicable) in the form of accounting records.Any local/state tax refunds you received in the previous year.1099 forms if you did more than $600 worth of contract work.W-2 forms for you and spouse from all employers.Social security numbers for any dependents you intend to claim. ![]()
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