4 Tax Deductions To Keep an Eye On
Let’s be frank, tax deductions save you money. Keeping track of them throughout the year can save you time when tax season hits. We’ve compiled a list of four tax deductions to remember.
Keep your receipts for these itemized deductions:
1. Unreimbursed Medical and Dental Expenses – This deduction applies to out-of-pocket medical and/or dental expenses not covered by insurance that exceed 7.5% of your adjusted gross income.
2. Interest Expenses – Deduct the interest that you pay on mortgages and home equity lines of credit.
3. Taxes Paid – You can deduct your personal property taxes and state and local taxes. Any refund that was received by the taxpayer from the state in the previous year must be counted as income if the taxpayer itemized deductions in the previous year.
4. Charitable Donations – You can deduct any charitable donation within the following limitation:
Cash contributions that exceed 50% of the taxpayer’s adjusted gross income must be carried over to the next year, as well as noncash contributions that exceed 30% of AGI.
Keep your receipts, so you can cash in on these deductions!