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What are some deductions and credits I can claim?

Updated: Dec 12, 2022



The deductions and credits you’re eligible to claim vary depending upon your situation. Here are some deductions that you can claim even if you don’t itemize.

  • Contributions to individual retirement arrangements, including IRAs, SEP-IRAs, Simple IRAs, and solo 401(k)s (these phases out at higher incomes)

  • 50% of self-employment taxes

  • Student loan interest up to $2,500

  • Tuition and fees for higher education up to $4,000 if you fall within income limits

  • Health savings account contributions made with personal funds

Deductions you may be eligible to claim only if you itemize:

  • $10,000 maximum for the aggregate of state and local taxes paid (SALT taxes)

  • Interest on up to $1 million of eligible home mortgage debt for loans taken out before Dec. 15, 2017, and up to $750,000 of eligible home mortgage debt for loans taken out after that

  • A deduction for medical expenses, but only if they cost at least 7.5% of your income

  • A deduction for charitable contributions that don’t exceed a set percentage of income

And finally, here are credits you may be eligible to claim.

  • The earned income tax credit provides a credit for lower-income Americans. The IRS EITC Assistant can help you determine if you qualify.

  • The child tax credit provides a credit of up to $2,000 per qualifying child for tax years 2018 to 2024. As much as $1,400 of this credit is refundable. Eligibility begins phasing out at $200,000 in income for single filers and $400,000 in income for married couples filing jointly.

  • The child and dependent care tax credit are valued at 20%–35% of the costs of allowable care expenses, up to $3,000 in expenses for the care of one qualifying person. A taxpayer caring for two or more dependents could claim a maximum credit of $6,000.

  • The American opportunity tax credit provides a maximum credit of $2,500 for qualifying educational expenses paid for eligible students. The credit is available only for tuition paid for the first four years of post-secondary education and there are income limits.

  • The lifetime learning credit provides a maximum credit of $2,000 per year for postsecondary educational costs. There are also income limits, and the credit is worth only 20% of qualifying expenses, up to a $10,000 maximum.

Depending on your situation there are probably other deductions and credits you can claim. Profit First Taxes can identify any tax breaks you may be eligible for.




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