Tax season is in full swing, and we know you are looking for the best tax deductions. With all the changes in tax laws effective this year, it can seem overwhelming to file on your own and make sure you are not missing any important deductions. Let’s take a look at some important deductions you do not want to forget when preparing your taxes, some of which are affected by tax law changes.
You can deduct certain qualified medical expenses that exceed 7.5% of your adjusted gross income. For instance, if you make $50,000 per year and have a medical expense that exceeds $3,750, the amount over $3750 may be written off on your taxes. This is the last year that the threshold will be 7.5%. Next year, it increases to 10%.
State and Local Taxes (SALT) deductions are ones you will want to pay attention to if you are itemizing. You can write off property taxes you have paid on a car, boat, house, airplane, and other personal property types you may have paid taxes on. The change in SALT deductions is the addition of the cap, which is now $10,000 under the Tax Cuts and Jobs Act.
While the Tax Cuts and Jobs Act has reduced the amount of mortgage interest you can deduct, it still is a deduction you do not want to miss. You can now only count interest paid on the portion of the mortgage up to $750,000 for a first or second home. Most home equity loans no longer qualify under this deduction, unless the monies from the loan were specifically used to improve the home.
Student Loan Interest
Many of us are paying off student loans. If you are not claimed on another person's returns, you can take advantage of writing off your student loan interest up to $2,500. Also, if you are married you must file jointly to take advantage of this deduction. Keep in mind, you will only get a tax form from your lender if you paid over $600 of interest this past year. Otherwise, you will need to get the information from your lender's website.
If you are itemizing, be sure that you write off all of your charitable contributions throughout the year. Charitable deductions can be claimed of up to 60% of your adjusted gross income. The new year did bring about a change in deductions for charitable contributions, however. If you receive the right to purchase athletic event tickets as the result of your donation to a college or university, you may no longer write off your donation.
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Our experienced tax professionals understand tax laws and find every deduction possible for you, reducing your tax liability as much as possible. Call us today at (561) 223-3252, and rest assured we stand by our lifetime guarantee of proper filing.