NEW YORK – March 21, 2022 – (Newswire.com)

Tax season is here, and that means it’s time to start looking at all the tax deductions you qualify for. Whether you’re looking to maximize your repayment so you can go on vacation, consolidate credit card debt, pay off debt completely, or for any other reason, the more deductions you can take advantage of, the better. Here are some of the most common deductions taxpayers should be aware of before filing their 2021 tax return.

Mortgage interest

Homeowners can deduct interest on their mortgage up to $750,000 in debt ($1,500,000 if married and filing jointly) in 2021. This deduction is available whether or not you itemize the deductions.

Medical fees

Taxpayers can deduct medical expenses that exceed 7.5% of their adjusted gross income in 2021. This deduction is available whether or not the taxpayer details their deductions. You can also deduct the mileage you incurred to get to your medical appointment.

National and local taxes

Taxpayers can deduct state and local taxes (including sales and property taxes) up to $10,000 in 2021, whether or not you itemize your deductions.

Charitable donations

Donating to a qualified charity can also reduce your taxable income. You can deduct charitable contributions up to $100,000 per year in 2021. This deduction is available even if you do not itemize your deductions. To be eligible, your charity must be registered as a 501(c3) nonprofit organization with the IRS.

Education-related expenses

Many education-related expenses can also be deducted from your taxes. This includes tuition, fees, and other related costs to attend the school. You may also be able to deduct books, supplies, and other educational expenses. The tuition and fees deduction allows you to deduct tuition and related educational costs up to $4,000 per year.

Loss of life

Loss allowance allows you to deduct the loss you incurred due to a natural disaster, such as a tornado, hurricane, or earthquake. The deduction should not exceed more than 10% of your adjusted gross income (AGI).

529 packages

You can use a 529 plan to help pay for tuition, fees, and other tuition. You can contribute up to $10,000 per year to a 529 plan account, which is considered deductible even if you don’t itemize your deductions.

Home renovation deductions

You can deduct the cost of any major improvements to your home, including items such as new roofing, siding, windows, and doors. The amount you can deduct varies by type of improvement, and improvements that are considered “repairs,” such as window replacement or painting, do not qualify.

For your improvement expenses to qualify as ‘capital improvements’, you may want to get things checked out by your accountant first before trying to deduct them from your taxes.

Also, it may be better to defer their deduction to a later date if you plan to sell in order to reduce the amount of capital gains tax you will pay on the sale.

The bottom line

By understanding these tax deductions, you can keep more of your hard-earned money in your pocket. Contact your accountant for more possible deductions you may be entitled to this year.

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Credello: common tax deductions you need to know for 2021