Easy Common Tax Deductions

While consulting a tax adviser I was given some pointers on some common tax deductions that can be made but sometimes are over looked. Some need to be itemized while others do not need to be itemized.

Common Federal Tax Deductions that needn’t be itemized

1. Capital losses which are realized losses that can offset unlimited capital gains or $3,000 in income.
2. Retirement contributions such as Traditional or SEP-IRA, 401(k), etc.
3. Student loan interest that are up to $2,500 per year and only on qualified student loans.
4. Business expenses which are for business owners and employees with certain un-reimbursed expenses.

Common Federal Tax Deductions that need to be itemized

1. Home equity loan deduction in which you can deduct interest paid during the whole year.
2. Home mortgage deduction in which you can deduct interest paid during the whole year.
3. Medical expenses where you can deduct those in excess of 7.5% of your AGI and I recommend getting help on this one.
4. State and local taxes or sales tax.
5. Charitable contributions such as cash and property donated to qualified organizations.
6. Personal casualty and theft losses where you deduct your loss minus insurance payments.

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