A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Types of Deductions

Charitable Contributions
Charitable Contributions

You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

source: irs.gov
Charitable Gifts
Charitable Gifts

You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

source: irs.gov
Federal Income Tax
Federal Income Tax

A refundable tax credit means you get a refund, even if it's more than what you owe. What Is a Tax Deduction? Subtract tax deductions from your income before you figure the amount of tax you owe.

source: irs.gov
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Health Insurance Premiums
Health Insurance Premiums

This is an adjustment to income, rather than an itemized deduction, for premiums you paid on a health insurance policy covering medical care, including a qualified long-term care insurance policy covering medical care, for yourself, your spouse, and dependents.

source: irs.gov
Home Mortgage Interest
Home Mortgage Interest

A home mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on the loan which is secured by their principal residence (or, sometimes, a second home).

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Insurance Policies
Insurance Policies

The insurance deductible is the amount of money you will pay in an insurance claim before the insurance coverage starts paying you. It is your portion of the financial responsibility and forms part of your insurance contract.

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Investment Interest Expense
Investment Interest Expense

To calculate your deductible investment interest expense, you need to know the following: Your total investment income for investments taxed at your ordinary income rate. This normally includes ordinary dividends and interest income, but does not include investment income taxed at the lower capital gains tax rates, like qualified dividends or municipal bond interest which is not taxed.

source: schwab.com
Lifetime Learning
Lifetime Learning

The Lifetime Learning Credit (LLC) is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses--including courses to acquire or improve job skills.

source: irs.gov
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Looking for Work
Looking for Work

You can’t deduct job search expenses if you’re looking for a job for the first time. You usually will claim job search expenses as a miscellaneous itemized deduction. You can deduct only the amount of your total miscellaneous deductions that exceed two percent of your adjusted gross income.

source: irs.gov
Medical Expenses
Medical Expenses

If you itemize your deductions for a taxable year on Form 1040, Schedule A.pdf, Itemized Deductions, you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents.

source: irs.gov
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Medicare Tax (FICA)
Medicare Tax (FICA)

FICA taxes are taxes for Social Security and Medicare. The FICA tax is shared by employees and employers, so one-half of the tax is deducted from employee paychecks each payday. The other half, an amount equal to the amount deducted from employee paychecks, must be paid by you as an employer.

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Medicare tax Withholding
Medicare tax Withholding

Topic Number: 751 - Social Security and Medicare Withholding Rates. Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as social security taxes, and the hospital insurance tax, also known as Medicare taxes. Different rates apply for these taxes.

source: irs.gov
Miscellaneous Deductions
Miscellaneous Deductions

Report your miscellaneous deductions subject to the 2% limit on lines 21 through 23 and the total on line 24 for Form 1040, or lines 7 through 9 and the total on line 10 for Form 1040NR. Report your miscellaneous deductions not subject to the 2% limit on line 28 for Form 1040, or line 14 for Form 1040NR.

source: irs.gov
Paying the Babysitter
Paying the Babysitter

Baby Sitter Tax Deductions by Alia Nikolakopulos ; Updated June 11, 2018 Whether a baby sitter is entitled to tax deductions for her child-care activities depends on how the baby sitter's employment is classified. Some families may consider a baby sitter to be a household employee, while other families may not consider employment statuses and just pay sitters without reporting it to the Internal Revenue Service.

Property, State, and Local Income Taxes
Property, State, and Local Income Taxes

State and local income and real estate taxes make up the bulk of total state and local taxes deducted (about 60 percent and 35 percent, respectively), while sales taxes and personal property taxes account for the remainder.

Sales Taxes
Sales Taxes

The Sales Tax Deduction Calculator has been updated with overseas U.S. Military Zones and Districts where members of U.S. Military pay no sales tax. U.S. Military Personnel who are deployed overseas can use the calculator to determine the sales tax they paid while they were within the United States.

source: irs.gov
Social Security Taxes and
Social Security Taxes and

In general, U.S. social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer.

source: irs.gov
State Income Tax
State Income Tax

Deducting State and Local Taxes. If you itemize deductions, you can deduct state and local taxes you paid during the year. These taxes can include state and local income taxes or state and local sales taxes, but not both. To claim your state or local tax deduction on your 1040.com return, add the Taxes You Paid screen.

source: 1040.com
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Tax Savings for Teacher
Tax Savings for Teacher

Besides teachers, counselors, principals and aides can take the deduction if, for the tax year, they were employed at a state-approved public or private school system from kindergarten through grade 12, and worked at least 900 hours during the school year.

source: bankrate.com
Unusual Business Expenses
Unusual Business Expenses

Unusual Tax Breaks, Tax Deductions, and Tax Exemptions The United States tax code allows for many unusual but legitimate tax deductions, tax credits, and exemptions. Here is a sampling of some of the more noteworthy unusual tax breaks that have been successfully claimed.

source: efile.com