All About Tax Deductions

All About Tax Deductions



All About Tax Deductions
Income tax time can be a​ dreadful season if​ you​ are not aware of​ all of​ the​ income tax breaks you​ can get through income tax deductions .​
It is​ important to​ understand what is​ tax deductible so that you​ can get as​ large of​ a​ tax refund as​ possible.
Probably the​ most well known income tax deduction is​ the​ Earned Income Credit .​
the​ earned income tax credit is​ available to​ those who make a​ minimum amount of​ money and can file tax as​ single,​ married,​ or​ head of​ household .​
the​ more money you​ made,​ the​ more your earned income tax credit is​ until you​ hit the​ peak,​ which is​ around $30,​000 .​
Once you​ hit that peak,​ the​ earned income tax credit goes down until you​ reach the​ maximum income allowed to​ receive the​ earned income tax credit.
The second well known income tax deduction is​ the​ Child Tax Credit .​
the​ child tax credit is​ available to​ you​ if​ you​ have two or​ more children in​ the​ home for more than six months out of​ the​ year for which you​ are filing tax,​ and if​ you​ have a​ tax liability .​
Through the​ child tax credit,​ you​ receive around $1000 per child .​
This total amount is​ then applied to​ your tax liability,​ and any amount of​ child tax credit left over is​ made a​ part of​ your income tax refund.
Another income tax deduction is​ for child day care,​ when the​ child day care is​ needed in​ order for one or​ both parents to​ work outside the​ home .​
This day care income tax credit is​ equal to​ a​ percentage,​ up to​ a​ maximum amount,​ of​ the​ actual day care expenses paid for that tax year .​

Other expenses can also be tax deductible .​
Interest paid on​ a​ mortgage for the​ primary residence can be claimed as​ an​ income tax deduction .​
Medical expenses can also be claimed as​ an​ income tax deduction,​ although this is​ not very helpful unless you​ have an​ excessive amount of​ medical expenses to​ deduct on​ your income tax return .​
Tax paid to​ another state can be used as​ an​ income tax deduction in​ the​ state that you​ live in​ .​
Donations and contributions to​ charities,​ fundraisers,​ churches,​ etc .​
can also be tax deductible .​

If you​ are self-employed,​ you​ can also claim business expenses as​ income tax deductions .​
This includes any expenses directly related to​ running your business .​
you​ can take a​ mileage income tax deduction for any miles you​ put on​ your vehicle for business purposes .​
you​ can also take an​ income tax deduction for your office space in​ your home if​ it​ is​ used only for business purposes in​ the​ form of​ a​ portion of​ your rent,​ utilities,​ and phone bills .​
you​ can also take an​ income tax deduction for your personal computer,​ printer supplies,​ and other office supplies as​ long as​ you​ have the​ receipts for the​ tax deductible expenses,​ and usage logs for the​ personal computer and other equipment to​ show that it​ is​ used primarily for business.
As you​ can see,​ there are many income tax deductions available to​ you​ .​
If you​ have any questions about what is​ tax deductible,​ you​ should contact a​ qualified,​ certified,​ licensed tax accountant today.




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