You know that taxes are just a part of living. If you want to stay legal, you will pay your taxes. There seems to be no way around it. While that might be true, it does not mean that you want to pay one more penny in taxes than you have to. While the IRS provides many ways to get your taxes reduced via deductions, it is up to you to actually take advantage of them. They are simply not going to tell you about them as you file your latest return. We are here to help you get a head start on that. Here are some deductions for you to consider claiming if they apply to you. The best part about it is that these are deductions that can be claimed even if you do not itemize on your tax return.
Expenses for Educators
Teachers often buy their own supplies for their classrooms in order to subsidize already struggling school budgets. Thankfully, the IRS rewards this behavior with a deduction of up to $250 in educator related expenses. You do not even have to itemize these, but you do not need to hang on to those receipts just in case.
Contributions to Your IRA
You know that you should be saving for retirement. We begin hearing that early on in life. Well, the IRS incentivizes you to do so. When you contribute to an individual retirement account in any given tax year, you can plan on taking a deduction. This deduction is in place if you do not have a retirement plan in place through your employer. Keep in mind that contributions to a Roth IRA are not tax deductible, primarily because they provide other tax-related benefits now and down the line in the future.
Contributions to Your HSA
A health savings account is a great way to take advantage of tax savings on your medical related expenses. If you are enrolled through such a plan at work, then you should know that the contributions that you make to it are tax deductible. You will want to remember that the most you can put into this plan each year is $3,450. It does increase occasionally as the IRS sees fit. This is for individuals. If you have a family, that amount goes up to $6,850. The savings keep coming if you are over the age of 55, as you can contribute up to $1,000 more.
Payment of Self-Employment Tax
If you are self-employed, you might feel as if you are paying way too many taxes. This is actually because you are both the employer and the employee. The IRS feels your pain (OK, maybe not, but it sounds nice to say) and they have offered a deduction on the tax that you pay as a self-employed individual. You will be able to deduct 50 percent of the tax that you pay when you go to file your return.
Self-Employed Health Insurance Premiums
As a self-employed person, you are also responsible for your own health insurance premiums. This can get quite pricey, but it is nonetheless necessary. You will want to make note of the fact that the premiums you pay are also tax deductible. This only applies if you did not have access to a health insurance plan through a spouse or parent. If you pay for your entire family, those premium are tax deductible as well.
Interest on Student Loans
If you are still paying on your student loans, you have probably that quite a bit of your monthly payments are going to interest. As a way to ease the burden just a bit, you are able to deduct a certain amount of interest. Currently, that is $2,500 if you do not itemize. Keep in mind that this deduction is only available if you are single taxpayer earning less than $80,000 a year, or a married taxpayer filing jointly with an income under $165,000.
Take a close at these six tax deductions and see if any of them apply to you. Even if you do not itemize on your tax return, these are still deductions that you can claim quite easily. It is a way to reduce your overall tax liability, sometimes quite substantially. As such, you certainly do not want to overlook any of these if they apply to you.