Category Archives: Deductions
The principle of giving teaches that abundance flows into your life when you share with others. This doesn’t always mean money—it can be expressed through kindness, appreciation, or time. What truly matters is the generosity behind the act. While the emotional rewards of giving are priceless, the financial rewards are tangible. When you donate to […]
— Read more
This year has been devastating for many, with 33 states already impacted by federally declared disasters. Catastrophic events like Hurricanes Milton and Helene have resulted in billions of dollars in damages, leaving countless individuals without adequate insurance to cover their losses. If you’ve been affected, the federal disaster loss tax deduction may offer some much-needed […]
— Read more
An attempt by Congress to end the medical expense deduction caused an intense reaction because it would have affected people in nursing homes and those with costly chronic diseases. In the end, the deduction was retained and made slightly more generous by lawmakers. They lowered the threshold from 10 percent to 7.5 percent of income […]
— Read more
The tax overhaul also suspended many other deductions or imposed new limits on them while targeting major write-offs such as mortgage interest and state and local taxes. These changes usually expire in late 2025. On Schedule A, a grab bag of items, Congress eliminated deductions for miscellaneous expenses. The change removed deductions for unreimbursed travel, […]
— Read more
As a result of the overhaul, the number of tax returns claiming deductions for charitable contributions is expected to fall by more than 50%. For 2018, approximately 15 million filers will take this write-off, compared to approximately 36 million for 2017. The standard 2018 deduction is almost double the 2017 level, rising from $6,350 to […]
— Read more
The overhaul made a significant change to the alimony payments tax status. For divorce and separation agreements signed after 2018, payers will not be able to deduct alimony on their tax returns. At the same time, future recipients will no longer be required to report these payments as income, making their tax treatment similar to […]
— Read more
The tax overhaul contains new restrictions, both indirect and direct, on mortgage interest deductions. By the end of 2025, these changes expire. According to IRS, the number of tax returns with a mortgage interest deduction will fall to approximately 14 million in 2018 compared to 32 million in 2017. One reason for the change is […]
— Read more
For many people, the most significant changes in the tax overhaul are the almost doubling of the standard deduction and the abrogation of the personal exemption. The standard deduction is the amount filers subtract from income if they do not break deductions for mortgage interest, charitable contributions, state and local taxes and other items in […]
— Read more
The tax overhaul placed a limit on deductions for state and local taxes, known as SALT, in a landmark change. These deductions were previously unlimited for individuals, although many people who owed the alternative minimum tax lost some or all of their SALT write-offs. Taxpayers can deduct property and income taxes or sales taxes for […]
— Read more
When filing your taxes, you will often have to choose between itemizing your deductions and taking a standard deduction. You should determine the amount of your deductions using both methods, then select which option reduces the amount of tax you owe. The method that leads to the greatest deduction typically provides the greatest credit. How […]
— Read more
