What Can You Deduct On Your Tax Return This Year?
It’s tax time again, and if you’re like many of us this time of year, you’re adding up figures, gathering up bank statements and maybe searching your documents files for that missing May expense report. While your taxes may be fairly simple, there’s an added complication if you choose to itemize. In fact, one of the most common question tax professionals get is: what can I take off?
The answer (as with many things) is that it depends.
To get started, here’s a rundown of all the things you can potentially itemize. As you can see, the list is pretty extensive. Generally speaking, you’ll want to be looking into itemizing if any of the following situations apply to you:
- You bought a house in the early part of the year.
- You had an abnormally high amount of out-of-pocket medical expenses.
- You gave a large amount to charity.
Remember the total from all your expenses, be they mortgage interest, real estate taxes, personal property taxes, work-related costs or others, must add up to more than the standard deduction for your filing status. Otherwise itemizing your deductions isn’t going to help you.
Also keep in mind that these deductions only apply to the 2017 tax year. The recent legislation passed by congress in December 2017 will bring massive changes to the deductibility of many of these items in future years.
As always, before you file your return, consult a qualified tax professional with any questions.