Tax Income

The standard deduction is a fixed dollar amount that reduces your taxable income. The amount varies based on your filing status (single, married filing jointly, etc.). If you don't itemize deductions, you can claim the standard deduction.

Homeowners can deduct interest paid on their mortgage loan for their primary residence and, in some cases, a second home. This deduction can significantly lower taxable income for those who itemize.

Donations made to qualified charitable organizations are tax-deductible. This includes cash donations, property, or goods, as long as you have proper documentation to support your claim.

Contributions to retirement accounts like IRAs or 401(k)s may be tax-deductible. The deduction limits vary depending on the type of account and income level.

The Child Tax Credit allows eligible taxpayers to claim a credit for each qualifying child under the age of 17. This credit can help reduce your overall tax liability.

The EITC is a refundable tax credit for low-to-moderate-income individuals and families. It provides financial relief to taxpayers who meet specific income requirements.

Credits like the American Opportunity Credit and Lifetime Learning Credit help offset education expenses, such as tuition and fees, for eligible students or their parents.

Contributions to a Health Savings Account may be tax-deductible. HSAs allow you to save money tax-free for qualified medical expenses.

Taxpayers can deduct state and local taxes paid, including property taxes and either income or sales taxes. The deduction is capped at $10,000 per year.

Self-employed individuals and business owners can deduct ordinary and necessary expenses related to their business operations, such as office supplies, travel, and equipment.

Taxpayers who itemize can deduct medical expenses exceeding 7.5% of their adjusted gross income. This includes costs for doctors, prescription medications, and certain medical equipment.

Homeowners who make energy-efficient upgrades to their home, such as installing solar panels or energy-efficient windows, may qualify for tax credits.