Common IRS Tax Deductions Every American Should Know
As tax season approaches, it’s essential to familiarize yourself with the most common IRS tax deductions. By understanding what you can deduct, you’ll be able to reduce your taxable income and lower your tax liability.
Mortgage Interest and Property Taxes
If you own a home or are paying off student loans, you may qualify for significant deductions.
- Up to $12,000 in mortgage interest payments can be deducted from your taxable income.
- You can also deduct up to $3,000 in property taxes per year.
If you’re a generous giver or have medical expenses, you may be able to claim deductions on your tax return.
- You can deduct charitable donations up to 60% of your adjusted gross income (AGI).
- Medical expenses that exceed 10% of your AGI are also deductible.
By understanding and utilizing these common IRS tax deductions, you’ll be able to reduce your taxable income and lower your tax liability. Remember to keep accurate records and consult with a tax professional if you have any questions or concerns.