Determine your filing status
- Your salary
- Interest earned on savings and checking accounts
- Interest on all bonds except municipal bonds and dividends on investments
- Bonuses, severance pay, and sick pay from your employer
- Unemployment compensation
- Capital gains on mutual funds and other investments
- Bartering, royalties, and gambling winnings, including lottery winnings
- Most withdrawals from an IRA or annuity
- The money you contribute to certain types of retirement accounts
- Gifts from your grandmother or any other gifts
- Disability income on benefits you paid for with after-tax dollars
- Childcare paid for through a plan at work
- Return of invested capital – that is, your money invested that is returned to you
- 401K money that’s rolled over into another 401(K) or IRA when you change jobs
- Child support payments
- The money you’ve lent that is repaid
Types Of Tax Deductions
Standard Deductions – The standard deduction is a fixed, base-level amount you can get if you don’t qualify for a higher amount through itemized deductions.
Itemized Deductions – Tax breaks you can only take if you take specific deductions you list on your tax return.
Here are some of the more common itemized deductions include:
Mortgage expense – This can include mortgage interest and mortgage insurance premiums.
Other taxes – You may be able to deduct the amount you paid for state and local taxes, including personal property real estate taxes.
Gifts to charity – If you can itemize, you can deduct the fair market value of the spare TV you donated to the animal shelters thrift store, as well as donations to a church.
Medical and dental expenses – A deduction is available for unreimbursed expenses above a certain percentage of your income.
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