7 IRS Deductions & Credits Individuals can Claim in 2019 Tax Filing !

IRS Deductions & Credits

The Federal tax filing due date for 2019 return is 15th July 2020 . Despite the onslaught of deadly Coronavirus pandemic , what is fixed is filing of tax return. So, here is reminder for taxpayers who are not carrying any business or professions- to forget to claim itemised deduction (in case they are not opting for the standard deduction ) , to prepare tax return properly by not forgetting to claim any tax deductions or credits that you may be eligible to claim for tax year 2019 . Here is a list of eleven such tax deductions or credits

1. Medical Expenditure

You can deduct medical expenses that exceed 7.5% of your adjusted gross income.The deductible medical expenses can be expense on the doctor’s visits, tests, and prescription drugs, as well as health insurance payments, dental and vision costs, medical devices. Even transportation to and from medical appointments, lodging if you need to travel for medical reasons, and accessibility-related home renovations are covered .

2. Interest on mortgage of home

Mortgage interest on your owned home can be deducted on a home mortgage valued up to $750,000 (up to $1 million if your mortgage was issued before December 15, 2017). If you have a home equity loan, the interest on that may no longer be deductible. Read FAQ on Mortgage Interest

3. State taxes 

You can deduct state or local income taxes , property taxes, from your federal tax return – up to $10,000 regardless of whether you’re single or married filing jointly. Separate married filers get $5,000 each.

4. Charitable contributions

The donataion to eligible charitable organiation is eligible for deuction with certain conditions like :

  • you must maintain record of donation like proof of payment of contributions
  • an acknowledgment letter from the charitable organisation if the donation was more than $250 .
  • If you donate money to a college or university and receive sports tickets in exchange, you’ll now need to exclude the value of those tickets from the deductible amount.

5. Natural disasters casualty losses

If there was damage or destruction of property due to a sudden and unforeseen event – then such losses are deductible provided the area falls under the federally designated disaster area. You can look up federal disasters on the FEMA website .

6. Childcare expenses

If you are working and therefore required to hire a nanny or pay for childcare ,then You can claim up to $3,000 in expenses per child.

7. Higher education expenses

You can claim education credit for expenditure some of the cost of tuition and required fees, and may also be able to deduct the cost of books and materials. The tuition and fees deduction is capped at $4,000 for individuals with adjusted gross income up to $65,000 ($130,000 for married filers) and begins to phase out as your adjusted gross income exceeds $65,000 (or $130,000 for married filers).Further , you can deduct the interest on student loans you paid during 2018. If it’s someone else’s loan, make sure to ask them for the form 1098-E that they received from their lender.

If you’re a teacher who spent money out of pocket last year on classroom supplies, you can deduct up to $250 on your taxes. Just make sure you have receipts to back up your claims.

Please note that higher education expense deduction and credit is available irrespective of the fact whether you itemised deduction or not

Leave a Comment

Malcare WordPress Security