Tax Season 2020: Extensions and Dates to Remember
8 Most Common Tax Deductions For 2019 Tax Year – Reduce Your Tax Bill by Itemizing These Tax-Deductible Expenses
“Nothing is certain except for death and taxes.” Those were the famous words of Benjamin Franklin more than 200 years ago, and it remains true today. This means that everything in life is uncertain and that the only things certain in this world are that we will all die and we will all have to pay taxes.
It’s our responsibility to pay taxes to the federal government so that it can have the money to invest in technology and education, and to provide goods and services for the benefit of the American people.
Even with the coronavirus pandemic gripping the country, citizens will still have to pay their taxes. This has attained added urgency since the federal government needs to boost its coffers to be able to fund essential services in this time of crisis.
8 Ways to Lower Your Tax Bill
The government allows taxpayers to reduce their tax dues through tax deductions. Such a deduction lowers your tax due by subtracting the total amount of your deductions from your taxable income. For example, if you are a W-2 worker or company employee who earned $75,000 last year and you have $15,000 in deductions, your taxable income for the year would be $60,000. W-2 workers can often qualify for various deductions, especially if they itemize their returns.
Here are eight of the most common expenses you can itemize to claim your tax deductions:
1. Medical and dental expenses
If you incurred medical expenses that are higher than 7.5 percent of your gross adjusted income, you can itemize and deduct medical and dental expenses for yourself, your partner and dependents.
2. Child care
The Child Tax Credit of $2,000 per qualifying dependent helps parents cope with expenses spent on daycare, babysitting, camps and other forms of child care.
3. Student loans
If you’re paying back student loans, you can deduct up to $2,500 of student loan interest as long as it is a qualified loan. To apply for this benefit, wait for your lender to send you a 1098-E form that you can attach along with your tax filing.
4. Teacher expenses
Teachers can apply for a deduction of up to $250 from out-of-pocket expenses incurred to purchase school material. Those who qualify for this benefit are instructors from kindergarten to 12th grade, counselors, principals, and aides that work at least 900 hours a school year.
5. Accounting fees
If you own a business that employed the services of a professional to set up your books and prepare for your annual tax return, you can apply for a deduction.
If you’re a homeowner, you can also apply for a deduction on your mortgage interest tax on debts up to $750,000. For homes bought before December 15, 2017, the amount of debt that qualifies for deduction is $1 million.
7. Elderly dependents
If you are caring for elderly parents, you can count them as dependents if you have been providing at least 50 percent of your parents’ support in the past year.
8. Charitable donations
You can deduct contributions made to a charitable cause from your taxes. Depending on the type of charity, you can qualify from 20 percent to a maximum of 100 percent tax deduction from your donation.
If you don’t want to itemize, you can also use the standard deduction to lower your taxable income. The standard deduction varies based on your filing status. The standard deduction changes a bit each year because it is tied to inflation. For the 2019 tax year (which we file in the first half of 2020), the federal standard deduction for single filers and married couples filing separately is $12,200. It’s $24,400 if you’re a surviving spouse or you’re married and you’re filing jointly. If you’re the head of your household, it’s $18,350.
Here’s One Way of Getting a Hefty Tax Deduction
The government rewards those who donate to help the needy by allowing them to claim handsome tax deductions. You will be eligible to receive a maximized tax deduction in the next tax season when you donate an unneeded vehicle to Breast Cancer Car Donations. This is because your gift will be used by our IRS-certified 501(c)3 nonprofit partners.
When you donate an unwanted vehicle to us, we’ll also pick up and tow your vehicle for free wherever you’re located in the country.
We’ll sell your auto donation and use the proceeds to help fund our charity partners. Thanks to the funds they get from us, these nonprofits get to deliver comprehensive breast health services to more individuals in need. They provide needy breast cancer patients with easy access to medical facilities where they can undergo full treatment. They also provide breast cancer survivors with follow-up care. Other beneficiaries get to receive free breast cancer screening and prevention and education services.
If you want to know the various types of vehicles that you can donate, you can check them out here.
Save a Life with Just One Phone Call
One phone call is all it takes to save the life of a breast cancer victim. If you have an extra car to spare, call us at 866-540-5069 or fill out our online donation form. We’ll be waiting to hear from you.