Medical and dental expenses, real estate and property taxes, home mortgage interest, charitable contributions and educational expenses are some of the items taxpayers can deduct from their taxes, states the Internal Revenue Service. Business uses of a home or car and travel and entertainment expenses for business are also deductible.Continue Reading
If a taxpayer itemizes his deductions using Schedule A of Form 1040, he can deduct medical expenses exceeding 10 percent of adjusted gross income, notes the IRS. The limit is reduced to 7.5 percent for people of age 65 or older. Income taxes and real estate taxes paid to state, local and foreign governments and personal property taxes and general sales taxes paid to state and local governments are deductible. Taxpayers can deduct prepaid interest paid as points on a mortgage as well as investment interest, qualified mortgage interest and non-farm business interest.
Charitable contributions to qualified organizations are deductible on Schedule A, reports the IRS. If a taxpayer receives goods or services in return for the contribution, the amount that exceeds the fair market value of such goods and services is deductible. For monetary gifts, a taxpayer must maintain a record showing the name of the organization and the amount and date of the contribution. Taxpayers can deduct expenses for education that maintains or improves their job skills or that an employer or the law requires.Learn more about Taxes