Taxes are unavoidable. However, you have many opportunities to reduce the amount you pay the IRS. There may be some expenses you have that you are not even aware can reduce your tax bill. This article will briefly overview some standard deductions you can apply to your income and pay a lower amount every year. Continue reading to learn more.
Itemized deductions allow you to lower your gross income by subtracting certain expenses from your salary. Below are some examples of deductible expenses:
- You can deduct the interest on your mortgage from your paycheck.
- Property taxes up to $10,000 can be removed.
- Any real estate payments you make to insurance premiums and other taxes can be deducted from your taxes.
- If you support a charity, you can decrease the amount you pay in taxes.
- Medical expenses that took up more than 7.5% of your income can be deducted.
- Any contributions you make to your 401(k) or IRA can be deducted depending on how much income you earn.
- You can deduct all your health insurance premiums if you work for yourself. This includes any dependents you have in your household.
- Student loan interest is deductible up to a certain amount.
For many people, standard deductions are a better option. If you are not self-employed or paying large amounts in property taxes, you might want to consider going with the standard deduction. Instead of keeping track of all your expenses, you receive an automatic reduction amount. Talk to a professional tax attorney to understand your tax liability Santa Ana CA. They will help you decide which method is best for you.
Your tax bill can be reduced if you work with the right professionals and keep track of your expenses. Don’t wait until the last minute. Talk to someone today about your taxes and how to reduce your payments.