Many people often wonder what they will be able to deduct from their taxes, and this can lead to some poor decision making. It is true that deductions on your taxes can help you to save money, but you need to make sure that you are able to legally qualify for those deductions. What are some of the most common deductions that you can use? Here are the top five.
If you have a home and you are paying a mortgage, you will be able to claim a deduction for the mortgage interest you are paying. You need to make sure that it is your primary home and that you are the owner. In most cases, people who spend more than $600 on interest for their mortgage will receive a 1098 form. This will show the amount you paid for the year.
Giving to charity is good for the soul, but it can also help with your taxes. Those who donate to charitable organizations through the year will be able to claim deductions, but it is advisable to talk with a tax preparer to know the limits of the amount you can claim.
If you paid state and local taxes through the year, you will be able to deduct them unless the money you used to pay them was exempt from federal income tax. Again, speaking with a tax preparer can help.
If you paid real estate taxes, based on the assessed value of the property, you will be able to deduct these as well.
Medical and dental expenses are deductible from your taxes as well as long as they are for diagnosis, mitigation, cure, treatment or prevention of a disease. The cost of healthcare is also deductible on your taxes.
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