Tax Deductions

Deducting Charitable Donations Part 2 – Items You Can Deduct

This is the second part of a 3-part series about Deducting Charitable Donations. On the last post, we’ve talked about the various qualified organizations (organizations that meet the IRS qualification requirement for your contribution to be deductible). Part 1 – Qualified Organizations – You can only deduct donations if these are made to qualified organizations. Also […]

Deducting Charitable Donations Part 1 – Qualified Organizations

Every year, Americans have been giving billions of dollars of donations to charity. Thanks to the government for giving out the incentive to do so: deducting those donations from your taxes. However, there are certain rules on what can you deduct, what organization qualifies, and how much you can deduct. This is a three part […]

The Home Mortgage Interest Deduction

One big advantage of owning a home is if you carry out a mortgage when you first purchase it, the mortgage interest that you paid may be tax deductible. This may include the loans you used to purchased your home, the second mortgage, or home equity loans. To be deductible, the mortgage loans must meet […]

Schedule A: Taxes You Can Deduct

It seems that there are just so may taxes that we have to pay from federal, state, sales, gift taxes, etc. The good thing about this is that the IRS allows us to deduct a few of these items on our tax return. However, not all taxes are deductible. You can deduct any of the […]

Schedule A: Medical Expenses You May Deduct

If you paid medical and dental expenses for yourself, your spouse and your qualifying dependents, you may be able to deduct them on your tax return. The IRS defines medical expenses as the costs of diagnostic, treatment, mitigation or prevention of disease and the costs of treatment affecting any part or function of the body. […]

Can I Deduct Gambling Losses and How Do I report it?

Do you gamble a lot? Have you been incurring losses? Find out if you can deduct your gambling losses and how to report it on your tax return.

Items You Can Deduct on Schedule A

Tax deductions are items that help you reduce your taxable income before your tax liability is calculated. There are two types of deductions namely: Above the line deductions – which we already discussed on our previous post. Below the line – (personal exemptions, standard deductions or  itemized deductions) On this post we will be discussing […]

OTC Drugs and Medicines Affected by the Health Reform Act

I have always utilized my Health Flexible Savings Account (HFSA) from work because it is very generous when it comes to getting tax breaks. I have saved tax dollars year after year for items such as over-the-counter medicines, insurance co-pay deductibles, eye care and other health expenses that are normally not covered by my insurance […]

Unreimbursed Employee Expenses: What Can You Deduct

Your job may require you to pay out-of-pocket costs but your employer may not reimburse you for those expenses. When this happens, you may be able to deduct those expenses on your tax return. So the question is what can you deduct and how do you report it on your tax return?

10 Above the Line Deductions You Don’t Want to Miss

Last week, we’ve talked about why you should maximize your above-the-line deductions or adjustments to your gross income. The AGI (or adjusted gross income) are used when calculating some limitations for your other deductions or credit.  You see, you do not have to itemized your expenses for you to claim these deductions. This means that […]

Why you should try to maximize your “Above-the-line” Deduction If You Can

Explains what AGI or “Above-the-line” deduction means, the various examples of an adjustments to gross income (AGI), and why you need to maximize these deductions.

Tuition And Fees Deduction: When To Use This Tax Relief?

The Tuition and Fees Deduction is an educational tax relief that can help you alleviate the cost of education in the United States. Discusses why you would need to consider this instead of a credit, the various test that you need to pass before you can claim this deduction, what expenses qualify, what expenses do not qualify, who is eligible, and how much expenses you can deduct.