Tax deductible business expenses list8/17/2023 ![]() Those lucky enough to claim the first-time homebuyer credit will need to attach IRS Form 5405. Those with mortgages will need a 1098 form from their mortgage provider. If you own a home, you’ll need a copy of your tax bill or a statement from your escrow company on how much in property taxes you paid over the year. The State and Local Tax (SALT) deduction is the biggest itemized deduction for most people, often due to property tax amounts, but it was limited to $10,000 per year by tax reform. The universal donation deduction expired and is no longer active for 2022 or 2023. ![]() The 2021 charitable donation tax deduction for non-itemizers was $600 for “married filing jointly” and $300 for other filers. Update: in 2021 there was a universal new charitable donation deduction for those that claimed the standard deduction. Note that there is a IRS maximum charitable donation limit, which is based off your income level and what type of organization you contribute to. Here’s complete documentation on IRS deductible charitable donations and my guide on donation receipts (I used to work at a non-profit). Also, you may be able to deduct mileage and other expenses from volunteering your time and efforts for a non-profit. If you have record of a gift that you gave to a 501(c)(3), hold onto them. If you get electronic statements from your online brokers, you may actually need to go into your account online and print off your 1099-B tax forms. This includes capital loss deductions for losses from mutual funds, stocks, and other investments. Here’s how I group tax related paperwork for deductions: 1. I’d recommend grabbing some manila folders and labeling them. I have a simple way of dealing with tax documents in lieu of itemizing that has worked for me over the years. Itemizing your taxes can be fairly straightforward – but much more so if you prepare year round. This is quite a dramatic change over what the 2017 (pre-tax reform) standard deductions were: The current standard deduction levels are: The standard deduction levels are annually adjusted and indexed to inflation. ![]() With the Tax Cut & Jobs Act (tax reform that went into effect starting in 2018), the standard deduction levels were doubled, and it’s now estimated than only about 10% of tax filers itemize their deductions now. I used to get excited about being able to itemize my taxes as I could see my tax obligation shrink with each added deduction or credit. Pre tax-reform, I was one of the 35-40% of Americans who itemized my taxes and did not take the standard deduction, and it paid off. ![]()
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