5 Common Tax Deductions You Can Get for Your 2019 Taxes
5 Common Tax Deductions You Can Get for Your 2019 Taxes – What You Need to Know about Tax Deductions
Taxpayers throughout the country can only be expected to grab the chance to get tax deductions in a heartbeat. After all, who wouldn’t want to reduce their Adjusted Gross Income (AGI) on their income tax returns?
This year’s tax filing deadline has been pushed back for three months — from April 15 to July 15 — because of the novel coronavirus pandemic. This means that people have more time to work on their taxable income and tax write-offs for 2019.
How to Claim Tax Deductions
Tax deductions allow taxpayers to get the most out of their tax returns. However, most people get confused about the various types of tax deductions that they can claim.
Generally, there are two ways to claim tax deductions: Either you take the standard deduction or itemize deductions. You can’t do both. Some tax deductions can only be counted if you itemize your taxes. However, you can no longer claim them if you opt for the standard deduction.
- Standard deduction
The standard deduction is a flat-dollar, no-questions-asked reduction in your AGI. The amount you qualify for depends on your filing status.
For example, for 2019, if you’re single, your standard deduction is $12,200. If you’re married and filing jointly, your tax write-off is $24,400. If you’re married but filing separately, your tax cut is $12,200. If you’re the head of your household, the deduction is $18,350.
Taxpayers over age 65 or who are blind get a bigger standard deduction.
- Itemized deductions
When you itemize your deductions, you cut your taxable income by taking any of the hundreds of available tax deductions you qualify for. The more you can deduct, the less you’ll pay in taxes.
When filing your tax return, the question is: Should you itemize or take the standard deduction?
If your standard deduction is less than the sum of your itemized deductions, you’ll likely save money if you itemize. However, if your standard deduction is more than the sum of your itemized deductions, your best option may be to take the standard deduction.
What Are the Most Common Tax Deductions You Can Itemize for Your 2019 Taxes?
If you’re not exactly sure about what qualifies as tax deductions that you can itemize, we’ve compiled the most common tax deductions for 2019 taxes.
- Charitable contributions
If you’re someone who champions and supports a cause, then giving to charities is probably not a new thing to you. Perhaps you’re also aware that the value of your donation can be deducted from your taxable income if you’re making a charitable contribution to an IRS-determined 501(c)3 nonprofit organizations. Although certain changes were made in the guidelines for charitable contributions, U.S. taxpayers can still claim their tax deductions for as much as 60 percent of their adjusted gross income.
- Medical expenses
People who have insurance may still have to pay for some medical or dental expenses out of their own pockets. These include doctor’s fees, hospital care, rehabilitation, and payments for certain medications and prescriptions such as insulin, eyeglasses, hearing aids, crutches or wheelchairs. However, medical and dental expenses may only qualify as tax deductions if they amount to more than 7.5 percent of your annual gross income.
- Student loan interest
While paying your student loans can be daunting, you can get something out of it. The interest rate you pay for your loan can be considered tax-deductible. Most taxpayers can claim it as an itemized deduction while others may opt to claim it as an adjustment to their tuition. While this may be considered as an itemized deduction, taxpayers can also opt to claim it as an adjustment to their income.
- Property taxes
If you own a land, car, watercraft or aircraft, you can take advantage of tax deductions from the property tax you pay for. This deduction falls under the SALT or state and local taxes deduction. However, property owners are only allowed to claim as much as $10,000 deduction for the taxes they paid for their property.
- Health Savings Account contribution
Those who are making contributions to their Health Savings Account (HSA) can claim a tax deduction based on the payments they made in the previous year. However, this doesn’t apply to those whose employers are the ones who have been paying for their HSA.
Donate a Vehicle and Get a Top Tax Deduction!
If you have a vehicle that you want to dispose of, consider donating it to Goodwill Car Donations. When you do so, you’ll entitle yourself to a top tax deduction in the next tax season while you help the disadvantaged members of your community.
We’ll auction off your donated vehicle and use the proceeds to fund the programs and services of the Goodwill organizations in your local area. These are IRS-approved 501(c)3 nonprofits that provide deserving less fortunate individuals with job training, employment and learning opportunities, livelihood assistance, and other critical community-building support services. These are all meant to equip and empower them so they can take care of themselves and their families as well.
We’ll pick up and tow your vehicle for free. What’s more, you can count on us to provide you with a quick and satisfying donation experience from start to finish.
We accept almost all types of vehicles, including those that need a lot of work.
If you need more information about how everything works in our donation process or about your benefits as a donor, visit our FAQs page. For your questions and concerns, call us at 866-233-8586 or leave us a message online.
Do Something Awesome TodayPhoto by Budgeron Bach under Pexels License
The best thing about donating a car to Goodwill Car Donations is that you get to make a massive impact in your community. Support a worthy cause today! Call us at 866-233-8586 or fill out our online donation form now!