List Of Tax Deductions That Would Never Change

There are various tax deductions available for an average American. The sad part, however, is most of them don’t make use of these deductions. Here is a complete list of tax deductions that wouldn’t change for many years now.

1.    Loss on Investment Deductions

If you incurred any losses from your investment products like mutual funds, bonds, stocks, etc. you ca deduct that amount from your taxable income. You must contact your broker and ask for an electronic statement, which might be useful to prove your loss.

2.    Charity Donations

If you made any donations to a recognized charitable organization, it’s deductibles. You don’t necessarily have to give cash, you can give away furniture, clothes, and any other item in good condition as charity, and they are all deductible.

3.    Property Deductions

Taxes you pay on your property are also deductible. You will, however, need a tax bill. People on mortgage must ask for a 1098 from the loan provider. If you are amongst the ones applied for first time home buyer tax credit, you will nave to attach IRS Form 5405.

4.    Interest on Students Loan can be deducted

5.    Family Expenses

If you have a family, you enjoy certain tax benefits. Expenses for adoption, dependent care, earned income credits, child tax credits, are all tax benefits you can claim.

6.    Vehicle Expenses

If you have a eco-friendly or hybrid vehicle which are qualified by IRS, you have to pay lesser income tax.

7.    Dental and Medical Expenditures

If your dental and medical expenses exceed 7.5 of your Adjusted Gross Income (AGI), you can deduct the amount from your total income tax payable. All costs pertaining to medical like insurance premiums, medicines bought, prescription bills, medical bills, visiting charges, equipments bought for treatment, traveling expenses, etc. are deductible.

8.    Retirement Investment

Investing in retirement accounts like traditional IRA are deductible. Some people also enjoy retirement savings contribution credit.

9.    Employment Expenditure

If you are spending money from your pocket to meet the work related expenses like travel, clothes, gas mileage, bills, accommodation, and so on, it is deductible. If you are self employed, you enjoy many other benefits especially if you are working from home.

You can benefit from most or all of them, only if you are aware about them and know how to use it. So, read more about these list of tax deductions, ask your consultant, and make a smart decision before filing your taxes.