What Itemized Deductions Can I Claim?

When it comes to filing your taxes, you want to make sure you are taking advantage of any deductions available to you.

itemize tax deduction

One way to do this is by itemizing your deductions instead of taking the standard deduction.

Itemizing your deductions means you are listing out all of your eligible expenses and subtracting them from your taxable income.

But what itemized deductions can you claim? Let's take a closer look.

Table of Contents

Medical and Dental Expenses

If you've had any medical or dental expenses throughout the year, you may be able to deduct them from your taxes.

This includes things like doctor's visits, prescriptions, and even travel expenses for medical purposes. However, there are limitations to what you can deduct.

Generally, you can only deduct expenses that exceed 7.5% of your adjusted gross income (AGI).

State and Local Taxes

You may also be able to deduct state and local taxes, including income, sales, and property taxes. However, there is a cap on how much you can deduct. Starting in 2018, the maximum deduction for state and local taxes is $10,000.

Mortgage Interest

If you own a home and have a mortgage, you can deduct the interest you paid on your mortgage throughout the year. This can be a significant deduction, especially in the early years of your mortgage when most of your payments go towards interest.

Charitable Donations

If you made any charitable donations throughout the year, you can deduct them from your taxes. This includes donations of cash, property, and even stocks.

However, there are limitations to how much you can deduct. Generally, you can only deduct up to 60% of your AGI for charitable donations.

Casualty and Theft Losses

If you experienced any losses due to theft, fire, or another casualty, you may be able to deduct those losses from your taxes. However, there are limitations to what you can deduct, and you must be able to prove the loss.

Job Expenses

If you have any job-related expenses, such as travel expenses, work-related education, or even the cost of a home office, you may be able to deduct them from your taxes. However, there are limitations to what you can deduct, and the expenses must be necessary for your job.

Miscellaneous Deductions

Several other miscellaneous deductions may be available, including tax preparation fees, investment expenses, and even gambling losses. However, these deductions are subject to limitations and must meet certain criteria to be eligible.

A Great Way to Lower Your Taxable Income

Itemizing your deductions can be a great way to lower your taxable income and reduce your tax bill. However, it's important to note that not everyone will benefit from itemizing their deductions.

In some cases, taking the standard deduction may be a better option. If you're not sure which option is right for you, it's always a good idea to consult with a tax professional.

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