Common deductions on individual federal income taxes in 2014 include home mortgage interest, state and local taxes, charitable contributions, and mileage expenses, as listed in the online IRS publication on credits and deductions. Eligible taxpayers may take capital gains deductions on stock market or real estate investments, according to The Christian Science Monitor. Teachers usually deduct the maximum allowable amount of $250.
Thanks to the American Taxpayer Relief Act of 2012, the American Opportunity Tax Credit is available through 2017, allowing college students and their parents to deduct up to a maximum of $2,500 per student, reports the IRS. The full credit is available to taxpayers earning a modified gross adjusted income of $80,000 or less per year; the credit is phased out in higher income brackets.
Medical expenses may also be deducted, although these must exceed 10 percent of a taxpayer’s adjusted gross income, unless the taxpayer is a senior over the age of 65, The Christian Science Monitor reports. Taxpayers who make energy-saving improvements on their homes can write off 10 percent, with a lifetime maximum of $500, thanks to an energy credit available. Homeowners who add solar panels might qualify for additional credits.
Work-from-home deductions are simplified in the 2014 tax year, says The Christian Science Monitor. Rather than itemizing home office expenses, taxpayers who work from home can deduct $5 per square foot of the area of their home dedicated to office space, to a maximum of 300 square feet or $1,500.