Common Tax Deductions

Looking for deductions

Claiming deductions is an important part of filing your taxes, but some people don’t do it. Some people do submit claims, but they miss valuable deductions without realizing it. You definitely want to claim as many deductions as you are entitled to. This can lead to a bigger return and help make sure you don’t pay more than you owe in taxes. Today in our LongSchaefer blog, we’ll talk about some common deductions you might be missing out on.

Don’t Overlook These Deductions

Here are some common deductions that people overlook when filing their taxes:

Education Expenses

If you took a class this year that is meant to improve your skills in your field, you might be able to deduct it from your taxes or possibly get a credit depending on facts and circumstances. This includes everything from tuition to books to transportation expenses.

Medical Expenses

If you had to go to the doctor frequently this year, you might be able to deduct some of the expenses. Remember, you’re only eligible for this deduction if the expenses exceeded 10% 7.5% of your adjusted gross income with the passage of the TCJA tax act starting this year and you itemize your deductions. Keep in mind that medical expenses include dental, chiropractic & ophthalmic care too.

Charitable Donations

This deduction isn’t overlooked too often, but it’s still important to keep track of all your charitable donations. Make sure you keep a written record of all your donations. You’ll need to prove that you made the donation and have a valuation of how much you donated. Charities such as Goodwill and The Salvation Army will even provide a “Donated Goods Valuation Guide” to help facilitate the record keeping substantiation.  

Student Loan Interest

There is a possibility to deduct up to $2,500 of interest paid on qualified education loans as an above the line deduction.  There are nuances that must be considered for taxpayers who are dependents versus those that aren’t as well as who is legally obligated to repay the loan for the deduction.  It is important to navigate the restrictions to realize the maximum benefit.

State Sales Tax

If you live in a state that doesn’t impose an income tax, you may consider deducting your state sales tax. When making this deduction, you’ll choose between your state and local income taxes or your state and local sales taxes. Choose whichever will give you the bigger deduction. The new TCJA tax act does limit this part of the itemized deductions to $10K.

Choose LongSchaefer as Your Tax Professional

If you don’t want to miss any deductions this year, you can always trust a highly trained and educated tax professional to help you out. Filing your taxes can be difficult and time-consuming, but when you let someone qualified file your taxes for you, all you have to do is send them the proper documentation and answer some relevant questions to put your best foot forward. If you’re interested in having someone take care of your taxes for you, trust LongSchaefer. Contact us today for more information.

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May 2020 COVID-19 Update

In order to comply with the Ohio Health Department Order & CDC social distancing recommendations, our offices are closed until further notice. Rest assured that our established protocols and available technology will allow us to provide the same level of service and quality you expect from LongSchaefer during this time.

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