{"id":16254,"date":"2024-03-14T17:32:51","date_gmt":"2024-03-14T22:32:51","guid":{"rendered":"https:\/\/blog.eztaxreturn.com\/?p=16254"},"modified":"2024-03-23T10:11:05","modified_gmt":"2024-03-23T15:11:05","slug":"5-things-you-didnt-know-were-tax-deductions","status":"publish","type":"post","link":"https:\/\/staging.eztaxreturn.com\/blog\/5-things-you-didnt-know-were-tax-deductions\/","title":{"rendered":"6 Things You Didn\u2019t Know Were Tax Deductions"},"content":{"rendered":"\n

The information in this article is up to date for tax year 2023 (returns filed in 2024).<\/em><\/p>\n\n\n\n

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Want to avoid owing a large amount of money at tax time? Make sure you take advantage of every tax deduction you can! We know that the tax laws are confusing and it can be hard for the average person to know what tax breaks are out there. Fortunately, we are willing to share our tax secrets.  <\/p>\n\n\n\n

Here are 6 tax deductions you may not know about.<\/p>\n\n\n\n

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1. Medical and dental expenses<\/strong><\/h2>\n\n\n\n

Did you know that claiming your medical expenses<\/a> could reduce your tax bill? That\u2019s right! So, the next time you start dreading that trip to the doctor, just think of all the tax savings you\u2019re racking up in the process.\u00a0\u00a0<\/p>\n\n\n\n

If you itemize your deductions<\/a>, you can deduct unreimbursed medical and dental expenses paid for you, your spouse and your dependents. Qualified expenses include payments for the diagnosis, treatment, or prevention of disease. The downside? You can only deduct the portion of the bill that exceeds 7.5% of your adjusted gross income (AGI)<\/a>.<\/p>\n\n\n\n

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2. Mortgage interest<\/strong><\/h2>\n\n\n\n

Home ownership can be expensive, but it comes with tax benefits.  This includes being able to deduct the interest paid on a loan used to buy, build or improve your main or second home.  <\/p>\n\n\n\n

How much interest you can deduct depends on when you bought your home. If your purchase was before December 15, 2017, you can deduct the interest on mortgages up to $1,000,000 ($500,000 if married filing separately). Those who purchased their home after that point can only deduct the interest on mortgages up to $750,000 ($375,000 if married filing separately).<\/p>\n\n\n\n

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3. Charitable contributions<\/strong><\/h2>\n\n\n\n

A small amount can make a big difference when it comes to helping those less fortunate. But you may want to dig a little deeper into your wallet the next time you are asked to donate to charity.  <\/p>\n\n\n\n

If you itemize and give to a qualified organization, your charitable contributions may be tax deductible. Qualified organizations include nonprofit hospitals and colleges, Veterans\u2019 groups, religious organizations, and more. For tax year 2023, you must itemize your deductions on a Schedule A to receive this tax deduction. You can make cash donations up to 60 percent of your adjusted gross income.<\/p>\n\n\n\n

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Get Started Now<\/a><\/div>\n<\/div>\n\n\n\n
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4. Student loan interest<\/strong><\/h2>\n\n\n\n

Sick and tired of paying your student loans? Who isn\u2019t?! It\u2019s an extra bill we rack up every month that can be very expensive! Well, we have some news that will make the pill a little easier to swallow.  <\/p>\n\n\n\n

You can deduct the interest you\u2019ve paid during the year or up to $2,500 for student loan interest, whichever is less. So paying off your student loan debt can actually pay off!<\/p>\n\n\n\n

>>Learn more about how financial aid affects your taxes.<\/a><\/p>\n\n\n\n

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5. Self-employment deductions<\/strong><\/h2>\n\n\n\n

Being your own boss is great for many reasons. You get to call the shots, set your own schedule, learn invaluable lessons, create job opportunities and more. But being self-employed can also be very costly, especially when it comes to your tax return. This is why it\u2019s important to understand the self-employment deductions<\/a> that you may qualify to lower your tax bill.\u00a0\u00a0<\/p>\n\n\n\n

Deductible expenses include:<\/p>\n\n\n\n