What items can you write off on your tax returns?

Detailed deductions Standard deduction and itemized deductions, deductible taxes, state and local tax deduction limit, property tax, real estate tax, sales tax, charitable contributions, gambling losses. You can deduct mortgage insurance premiums, mortgage interest and real estate taxes you paid during the year for your home. You can usually deduct charitable cash contributions of up to 60% of your adjusted gross income (AGI). Donations of items or property are also considered charitable contributions.

Answer 20 questions and get your partner today. If you're self-employed, you can deduct 100% of the health insurance premiums you pay monthly for yourself, your spouse and dependents, whether or not you itemize the deductions, says Robert Charron, a public accountant in charge of the tax department at Friedman, an accounting firm based in New York. If you're filing taxes with multiple deductions, start by gathering all the appropriate documentation, such as Form 1098 for mortgage interest rate deductions. For other deductions, which are based on expenses or contributions, keep accurate records.

You have the option of deducting sales taxes or state income taxes from your federal income tax. In a state that doesn't have its own income tax, this can save you a lot of money. Even if you paid state taxes, a sales tax break might be a better deal if you made a major purchase, such as an engagement ring or a car. You have to itemize to take the deduction instead of taking the standard deduction.

TurboTax helps determine if itemizing or applying the standard deduction is best for you based on your income and, if you itemize, whether you should take the sales tax deduction or deduct state income taxes. The Top 10 Tax Deductions You're NOT Taking. If you have a low or moderate income, the Earned Income Tax Credit (EITC) can help you reduce the amount of taxes you owe. To qualify, you must meet certain requirements and file a tax return.

Even if you don't owe any taxes or aren't required to file a return, you must file a return to be eligible. If the EITC reduces your taxes to less than zero, you can get a refund. Learn more about the Early Child Tax Credit. New York State itemized deductions are declared on Form IT-196, the itemized deductions for residents, non-residents and half-year residents of New York.

For certain detailed New York deduction calculations, the instructions on Form IT-196 may refer you to this web page for additional information or instructions. For federal purposes, you can no longer request an itemized deduction for a loss due to accident or theft, unless it is the result of a federally declared disaster. For New York purposes (Form IT-196, line 20), you can claim losses due to fortuitous events and theft. However, in the case of a fortuitous loss resulting from certain federally declared disasters (Form IT-196, line 3), see Miscellaneous Other Deductions, below.

As the simplified example in the table shows, a tax credit can make much more of a dent in your tax bill than a tax deduction. . It reduces the federal income tax paid by eligible homeowners by reducing their taxable income by the amount of mortgage interest they pay. From retirement account contributions to self-employment expenses, learn more about the five most common tax deductions from the experts at H&R Block.

If you break it down, you may be able to subtract the value of your charitable gifts, whether in cash or in goods, such as clothing or a car, from your taxable income. Tax deductions and tax credits can be a big money-saver if you know what they are, how they work, and how to achieve them. She's the rare teacher who doesn't have to reach into her pocket from time to time to buy the items needed for the classroom. For items such as electronics, appliances and furniture, you may need to pay a professional to assess the value of your donation.

Like the U.S. Opportunity Tax Credit, the lifelong learning credit doesn't count living expenses or transportation as eligible expenses. Homeowners benefit from a range of tax deductions, including those related to mortgage interest, points, property taxes, private mortgage insurance (PMI) and home office expenses. You must provide the name and tax identification number of the person or organization providing the care, as well as the address of the place where the care was provided.

The scraps of paper you put in your wallet can mean more money in your bank account when tax season rolls around. If the total of your itemized deductions under the new tax law is below the amounts listed above, you'd better take the standard deduction. If you regularly and exclusively use part of your home for business-related activities, the IRS allows you to cancel rent, utilities, real estate taxes, repairs, maintenance, and other related expenses. .