Home mortgage interest is the interest you paid on debt taken out to buy, build, or improve your home. Just to be clear, you can only deduct the interest you paid on your mortgage debt, not on the debt amount. The interest amount is reported to you on Form provided for the year by your mortgage company.
You could also use the debt to pay college tuition, credit card debt, or other non-home expenses. For home equity debts incurred after December 15, , you cannot deduct interest on the debt on Tax Returns unless it is used to buy, build, or improve your home that secures the debt. Debts incurred on or before December 15, are grandfathered into the old amounts listed above.
Charitable deduction allowances have been extended as a result of the Consolidated Appropriations Act, or "second stimulus" legislation from Dec. The gift must go directly to charity in cash rather than to a donor-advised fund or private foundation. Otherwise, you generally need to itemize to take the charitable deduction, which fewer people do since the standard deduction doubled a few years ago.
For record keeping purposes please consider the following:. The public charity or private foundation is a non-profit, IRS registered c 3 organization. Keep a record of the contribution usually the tax receipt from the charity. For non-cash donations, you might have to obtain a qualified appraisal to substantiate the value of the deduction you are claiming.
The itemized deduction for personal casualty and theft losses has been removed for Tax Years through with the exception of losses attributable to a federal disaster as declared by the President.
These include expenses incurred on the job and are not reimbursed e. In summary, deductions for un-reimbursed employee expenses and tax preparation expenses cannot be included on Tax Returns. Below is a summary of the sample amounts listed above in comparison to the Tax Return standard deductions. As you can see, with the filing status Single and Married Filing Separately, you would be well advised to itemize your deductions.
Such rules may decrease the state income tax benefit from charitable giving. You can download our free prospectus to see what sets us apart from other donor-advised funds. Are you a donor looking for the most tax advantaged way to give to the charities you care about? He is an attorney and accountant with fifteen years of tax planning experience, focusing primarily on sophisticated estate and income tax concepts.
Press enter to begin your search. Impact on Your Charitable Deduction Section 68 limits the allowable itemized deductions certain high-income taxpayers can claim by phasing-out the aggregate amount of itemized deductions that can be claimed on a tax return. Pulling it All Together As the examples show, inevitable expenses should be considered as subject to the Section 68 phase-out rule before the voluntary itemized deduction attributable to charitable gifts. Share Tweet Share Pin.
Stay Current on Philanthropy Get the latest on strategic giving every three weeks. We use cookies to offer you a better user experience, analyze site traffic, and store preferences. Read about how we use cookies, your privacy rights, and our data practices in our privacy policy. By using this site you acknowledge our use of cookies. You can manage your cookie preferences by going to cookie settings. Taxpayers need their filing status and AGI to calculate their phase-out amount.
Higher-income taxpayers can maximize itemized deductions not affected by the phase-out regulations. Taxpayers can deduct up to 10 percent of their medical expenses that exceed their AGI. Taxpayers can still take the maximum amount of their investment interest deduction and the casualty and theft deduction. Other itemized deductions left unchanged by the phase-out rules are gambling losses, unreimbursed employee expenses, tax preparation fees and miscellaneous expenses such as safe deposit box fees.
Based in St. Petersburg, Fla. She received a bachelor's degree in business administration from the University of South Florida. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
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