Types of Deductions Available for Your Tax Return
Type of Deductions You Can Get
If you are a homeowner, have donated money to charities, pay for medical costs, have health insurance, have childcare costs, have educational costs, expenses for K-12 educators, other state and local taxes (besides wage withholding), retirement and savings, disaster declared by the state.
Homeowners, Donations & Medical Costs Deductions
For homeowners, we need your 1098 forms along with any mortgage interest statements. Tax records with your real-estate and any personal property. Receipts for any home improvements help even more if they’re energy saving (e.g., solar panels). Any other 1098 forms.
For any donations to charity, we need the cash amounts you donated, records of any non-cash donations, the number of miles you drove due to charity or medical reasons.
For medical costs, we need the amount of money you paid to see any doctors, hospitals, dentists, surgeons, chiropractors, or other nontraditional medical practitioners.
Health Insurance & Childcare Costs
For health insurance, we’ll need a Form 1095-A. Form 1095-A is a privately owned insurance that you get for yourself. You may have a marketplace exemption certificate, which we’ll need (this is in respect to Form 1095-A). Form 1095-B along with Form 1095-C (if available) is needed when someone else provides you with health insurance, like a job or the government.
For childcare costs, we’ll need a record of all the money you’ve spent related to childcare, including babysitters, daycares, or family care centers for any infants in the household. What we can’t include are costs from work flexible spending accounts.
Educational & K-12 Instructors Costs
For educational costs, we’ll need your Form 1098-T given by schools, colleges, universities, and other institutions. We’ll need records of scholarships received. A Form 1098-E declaring any interest paid on a student loan.
For K-12 instructors, we’ll need any records or receipts showing the costs of money spent on classroom instructors from K-12.
State/Local Taxes & Retirement/Other Savings
For state and local taxes, we’re referring to other taxes paid besides wage withholding. This includes invoices with the amount of money paid for the vehicle sales tax.
For retirement and other savings, we’ll need Form 5498-SA, this form shows a health savings account contribution. We’ll need Form 5498 that shows contributions to the IRA. We’ll need other 5498 forms, they can be 5498-QA (Achieving a Better Life Experience savings account) and/or 5498-ESA (education savings account).
Disasters Declared by the State
If you have records with proof of property loss like appraisals, records of rebuilding your home or costs of repairs, any reimbursements for your insurance or unpaid claims, or if FEMA has declared your county a natural disaster, you can get a deduction in your tax return.
Check the FEMA website to check in which counties has there been a natural disaster declared.
Don't Miss Out on Any Deductions
Applying for the right deductions is the easiest way to save money on your taxes. These are just a few examples, but by spending time talking and discussing more your expenses, we can find areas where to save money.
Contact us if you have any questions about a specific situation in your life.