Which Tax Deductions Are Available This Tax Season?
Which Tax Deductions Are Available This Tax Season?
Tax time has officially started. That means, if you haven’t already, it’s time to gather up all your important tax documents and information. It might also be a good time to hire an experienced accountant. The Tax Cut and Jobs Act will play a huge role in this year’s tax season. So how will it affect you? Perhaps the biggest changes you need to be aware of are all the new policies for tax deductions and credits. If you’ve claimed a lot of deductions previously, then you really need to pay attention because things have changed.
To Itemize or Not to Itemize
However, if you’ve never itemized your deductions, then you probably don’t need to worry. You can just take the standard deduction like you normally would. In fact, this year, the standard deduction has nearly doubled so that’s even better news. For married couples filing jointly the standard deduction is $24,000. And for single filers, it’s $12,000. However, if you have numerous deductions, then itemizing might still be in your best interest. Of course, if your total deduction amount is not greater than $12,000 or $24,000, depending on your filing status, then taking the standard deduction still makes the most sense.
Changes to Deductions
For those who think they might have enough deductions to surpass the standard deduction thresholds, here is what you need to know. Pay close attention because the changes from the Tax Cut and Jobs Act could alter your plans. Here are some deductions you can include if you choose to itemize.
- Mortgage Interest – You can deduct mortgage interest on loans up to $750,000. Last year the threshold was $1 million.
- State and Local Income Taxes – state and local taxes are not completely off the board. You can still deduct up to $10,000 of state, local, and property taxes combined. Anything above that you cannot deduct.
- Property Taxes – that means if you own a home you can deduct your real estate taxes. But remember, the total deductible amount from state and local income taxes has dropped to $10,000.
- Medical Expenses – if your medical expenses surpass more than 7.5 percent of your AGI for 2019, you can deduct them.
- Charitable Giving – you can claim deductions on charitable giving up to 50 percent of your AGI.
There are other deductions you can take, but you don’t have to itemize to claim these deductions. They do still help to lower your tax bill. Some of these include:
- Health Savings Account Deduction – you can deduct the amount you contribute to an HSA, and the money grows tax-free.
- Self-Employment Taxes – you can deduct the employer part of your Social Security and Medicare tax if you’re self-employed.
- Self-Employed Insurance Premiums – if your spouse doesn’t have insurance through work, then you can deduct 100 percent of health insurance premiums for you and your family.
- IRA Contributions – you can deduct the amount you contribute to a traditional IRA.
- Educator Expenses – you can deduct up to $250 that you spend on teaching supplies.
If this all seems overwhelming, then now is a good time to seek the help of an experienced accountant. You work hard for your money. So make sure you keep every penny you deserve. Contact us today for help.
We hope you found this article about “Which Tax Deductions Are Available This Tax Season?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Chris Maxson, owner of Acucraft Fireplace Systems and Managing Partner, Maxson family’s business ventures discusses igniting innovation in the fireplace industry with Alan Olsen. Below are some of the key aspects of Chris Maxson’s influence on the fireplace industry and his unique approach with Acucraft Fireplace Systems. They indicate the rich legacy and innovation themes discussed.…
The Best Accounting Jokes for Financial Experts in 8 Laughs & Ledgers: Welcome to the lighter side of accounting! Yes, you read that right. While debits, credits, and balance sheets are serious business, who says accountants can’t have a sense of humor? Today, we’re diving into the funniest accounting jokes that even your auditor can’t…
Today, American Dreams host, Alan Olsen, sits down with Carson Holmquist, Co-Founder, Stream Logistics to discuss innovation and navigating high stakes. Transcript: Alan Olsen: Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Carson, Holmquist. Carson. Welcome to today’s show. Carson Holmquist: Thanks, Alan. So, so, so grateful to be…
Today, American Dreams host, Alan Olsen, sits down with Alexis Levi, a true pioneer in the sports and entertainment industry. As the first African American woman to become the owner and general manager of a men’s professional basketball team, Alexis shares her remarkable journey from being a competitive ice skater to entering the sports world.…