What Can Be Deducted From My Taxes?
No one wants to pay more taxes than they actually owe. But how do you know what qualifies as a tax write-off and can be deducted from your taxes? Just take a look at this list of things you might be able to deduct:
- Business expenses (must be ordinary and necessary)
- Student loan interest
- Traditional IRA contributions
- HSA contributions (other than those paid through your employer)
- Charitable contributions
- Medical expenses more than 10% of your AGI
- Mortgage interest
- Gambling losses to the extent of gambling winnings
- State and local income taxes withheld
- State and local estimated payments
- State and local payment sent in the tax year for a prior-year return (not including penalties or interest)
- Real estate taxes
- Personal property taxes
- State and local sales taxes (instead of state and local income taxes, if it’s more helpful)
- Estate tax paid because of someone’s death
- Income taxes paid to a foreign country or U.S. possession
- Half of any self-employment taxes paid
Note: Due to tax reform, there’s a limit to the amount of state and local tax (SALT) deductions. You can learn more about SALT deductions here.
What Doesn’t Qualify as a Tax Write-Off?
While you can count many types of taxes as deductions, there are others that you can’t deduct. These items don’t qualify as a tax write-off:
- Personal expenses
- Employee business expenses (eliminated in 2017 tax law)
- Federal income tax
- Federal excise tax
- Social Security, Medicare, FUTA, and RRTA taxes
- Customs duties
- Most federal estate or gift tax (except estate tax paid in respect to a decedent)
- Gasoline taxes
- Car inspection fees
- Special assessments for improvements to a property
- Tax paid for someone else
- License fees for a dog license, driver’s license, or marriage license
Still have questions about what can be deducted from your taxes? Our tax pros are happy to help. Simply schedule an appointment with one of our knowledgeable pros.
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