Tax deductible items include home mortgage interest, real estate taxes and charitable contributions of cash and goods, according to TurboTax. Individuals can also deduct for either their state income taxes or their state and local sales taxes. Taxpayers can also deduct costs they incur when they volunteer for nonprofit organizations. For example, purchasing postage for invitations to a fundraising event is a tax deductible expense.Continue Reading
In addition to deducting mortgage interest and property taxes, home buyers can deduct the points they pay when they obtain or refinance a mortgage, as TurboTax notes. Homeowners can deduct the entire value of the points in a single year when the mortgage is new, but they must amortize the points across the life of the loan if the mortgage is a refinanced loan.
Medical and dental expenses are deductible after those costs surpass an income-based threshold, which means that most taxpayers don’t get to take those deductions, as TurboTax explains. Health insurance premiums aren’t deductible when individuals pay those costs with pre-tax dollars.
Parents who pay student loan interest on behalf of their children can take a deduction for the interest regardless of whether their child is a dependent, as TurboTax advises. Parents are eligible for the deduction even if they aren’t legally liable for the loan.Learn more about Taxes