A tax deduction by definition is an expense subtracted from adjusted gross income when calculating taxable income, such as for state and local taxes paid, charitable gifts, and certain types of interest payments. These examples are not limited to only those though. There are several types of deductions to accommodate every avenue of business and/or personal expense. These are a few of the more common deductions that you can take advantage of to make sure you get the most out of your returns.
First, the interest on your home mortgage can be claimed as a deduction. This only applies to your main home or a second home. Income limits and restrictions may apply. Next, charitable donations can be deducted. Money, food, goods, and even property can be deducted as charity if they are given to a qualified charitable organization. It's very important to remember that your charitable deductions can only go up to half of your gross income. Finally, medical and dental expenses can be deducted. These expenses can include diagnosis, cure, mitigation, treatment or prevention of a disease or bacteria. It also covers costs of physicians, dentists, and other medical practitioners.
These deductions are worth a look when you do your taxes. Any chance to save money is worth a try, especially in our troubled economy. Talk to your tax preparer or include these deductions in your next tax return or online return. It's your money, you should get back as much as you're entitled to.
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