Even if the tax filing deadline is rapidly approaching, it still pays to know which deductions you could be eligible for so you can dig up old receipts to claim them. Here are some tax deductions that you shouldn't overlook.
1. Taxes Paid
State and local income taxes or general sales tax
Estimated tax payments
Prior year's state and local income tax you paid during the tax year (do not include penalties).
Disability insurance tax (some states)
Occupational taxes
Real estate tax (state, local or foreign).
Personal property taxes based on value. This includes auto registration or licensing fees, but only the portion based on value, and only if charged on a yearly basis. Varies by state.
2. Interest Paid
Mortgage interest
Late payment charge on mortgage payment
Mortgage prepayment penalties
Points on principal residence financing
Mortgage insurance premiums
3. Medical & Dental Expenses
Having to pay a lot of out-of-pocket medical expenses is a pain. But if you have a lot of medical and dental costs, you might be able to put them to tax deduction use in this first section of Schedule A. The key here is to make sure the expenses are qualified medical expenditures. IRS Publication 502 has a full list. Deductible medical expenses have to exceed 10 percent of your adjusted gross income to be claimed as an itemized deduction.
4. Gifts to Charity
Charitable contributions (cash and non-cash) made to qualified U.S. charities.
Mileage to donate goods to charity or to perform charitable services.
5. Educator Expenses
If you worked as an eligible educator in a K-12 school as a teacher, aide, counselor, or administrator, and you personally purchased ordinary and necessary back-to-school supplies for the classroom, you can deduct up to $250 worth of these expenses on your 1040 form. If you spent more than $250, you can deduct the remainder on Schedule A as an itemized deduction subject to the 2% limit.
If you’re married and filing jointly, and your spouse is also an eligible educator, you can deduct up to $500 total in educator expenses, but neither you nor your spouse may deduct more than your individual $250 limit.
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