Tax saving planning tips 2018

179 Tax Deduction Questions and Answers for 2019

of taxpayers either employ a tax preparer or use specialized software to file their taxes.

The U.S. tax code is so complex an entire industry exists just to help Americans file their taxes. According to the IRS Commissioner, John Koskinen, 90% of taxpayers require some type of assistance when filing their taxes. It is particularly confusing in years of tax reform, like 2019, which forces taxpayers to completely reassess their tax strategy for tax deductions.

We have compiled this massive FAQ to give you some quick answers to the most asked tax deduction questions. Although it is no substitute to talking to a tax professional, it is a good start. At the very least, this list of frequently asked questions will make you an informed taxpayer when you shop around for a tax preparation or tax relief company.

1. Can tax deductions be carried over?

You cannot carry forward most itemized deductions. You can carry forward charitable contributions that exceed 50% of your AGI, investment interest, and in some cases, points paid to obtain a mortgage.

2. Can tax deductions exceed income?

If your deductions exceed the income you earned, and you had tax withheld from your paycheck, you might be entitled to a refund.

3. Can pre-tax deductions be refunded?

Yes, they can but the refunds lose their tax exempt status. Format the refund category in your payroll system so taxes are applied only to the refund amount that was tax exempt. Your payroll software vendor can help you with this process.

4. Are donations tax deductible?

Donations to qualified charities are considered tax deductible expenses so they can reduce your taxable income.

5. Can medical co-pays be deducted?

Yes, medical insurance premiums, co-pays and uncovered medical expenses are deductible as itemized deductions. However, you can only deduct medical expenses that exceed 7.5% of your adjusted gross income.

6. Can property tax be deducted?

Homeowners who itemize their tax returns can deduct property taxes they pay on their main residence and any other real estate they own.

7. Can vehicle tax be deducted?

To deduct the value-based portion of your registration fee, you must itemize your deductions using federal schedule A. Car fees go on the line for “personal property taxes”.

8. Can I claim tax deductions?

Yes. Of course, which deductions you qualify for will vary depending on your source of income, whether you are an employee or a business owner, and your revenue.

9. Can grandparents get a tax deduction for contributing to a 529 plan?

Yes, grandparents can claim the deduction for contributing to a 529 if they live in one of the 34 states that offer a state income tax deduction for 529 college-savings plan contributions.

10. Can I claim a tax deduction for exercise equipment?

If it is a business (not a personal) expense you can. For example, if you are a personal trainer, you can probably claim the expense of purchasing exercise equipment like a treadmill, elliptical machine, or stationary bike.

11. Can I claim a tax deduction for daycare?

If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children.

12. Can I claim a tax deduction for newspapers subscriptions?

Yes, but newspaper and magazine subscriptions are only deductible if they are purchased for a business not for personal use.

13. Can I claim a tax deduction for rent?

Only if it is for your business. You can’t deduct your personal rent payments on your tax return. However, if you use the property for your trade or business, you can deduct it as a business expense.

14. Can I claim a tax deduction for preschool expenses?

Depending on your income, you can claim a tax credit for up to 35 percent of your preschool expenses, up to $3,000 for one child or $6,000 for two or more children.

15. Can I claim a tax deduction for college tuition?

Yes, the Tuition and Fees Deduction can reduce the amount of your income subject to tax by up to $4,000. This deduction, reported on Form 8917, Tuition and Fees Deduction, is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040).

16. Will property tax deduction be eliminated?

Taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes

17. Will state tax deductions be eliminated?

Nobody can predict what deductions will be eliminated in the future but tax law now allows it but caps state and local tax deduction at $10,000.

18. Can I get a tax deduction for donating to Goodwill?

If you itemize deductions on your federal tax return, you may be entitled to claim a charitable deduction for your Goodwill donations.

19. Will property tax be Grandfathered?

Existing loan debt will be grandfathered in. The new, lower deduction applies to loans taken after December 15, 2017.

20. How will tax deductions change in 2018?

The new tax law nearly doubles the standard deduction amount.

21. Is tax preparation deductible?

You can usually deduct tax preparation fees on the return for the year in which you pay them.

22. Are the legal fees associated with creating a will tax deductible?

No, you can’t deduct will preparation fees from your taxes.

23. When will tax deductions change?

Nobody knows. There are many tax law proposals under consideration so changes can happen at any time.

24. Will mortgage interest tax deductions be eliminated?

Anything is possible but right now it is tax deductible. However, because of the increase in the standard tax deduction, many people no longer benefit from itemizing their mortgage interest tax deduction.

25. Will real estate tax deductions be eliminated?

Nobody can foretell the future of tax law. However, right now, real estate tax deductions are here to stay.

26. Is there a tax deduction for will and testament?

No, having a last will and testament prepared is not deductible.

27. What are tax deductions?

Tax deduction is a reduction of a taxpayer’s taxable income. It is usually a result of expenses, particularly those incurred to produce additional income.

28. What is a tax deduction at source?

A person who is liable to make payment of specified nature to any other person shall deduct tax at source and remit the same into the account of the central government.

29. What is tax account number?

An employer account number is an identification number assigned by state government to an employer to track payroll tax liabilities and payments.

30. What is the tax deduction for child?

For 2018, the recently passed GOP tax reform bill doubles the amount of the Child Tax Credit from $1000 to $2000 per qualifying child.

31. What is a standard tax deduction for 2018?

The standard deduction for 2018 is $12,000 for single filers and married filers filing separately. For married filers filing jointly the standard deduction is $24,00, and $1,800 for heads of household.

32. What is the tax deduction for charitable donations?

Generally, you can deduct contributions up to 30 or 50 percent of your adjusted gross income depending on the nature and tax-exempt status of the charity you’re giving it to.

33. What is the tax deduction for a dependent?

The Child Tax Credit offers up to $2000 per qualifying dependent child 16 or younger at the end of the calendar year. New in 2018 is a $500 nonrefundable credit for qualifying dependents other than children.

34. What is tax deduction percentage?

The Federal income tax has 7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your income level and filing status.

35. What is tax deduction under 80c?

Under section 80c, a deduction of Rs 1,50,000 can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80c.

36. What is the tax deduction for medical expenses?

The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your income for 2017 and 2018. Beginning January 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.

37. What is the tax deduction for donating a car?

If the charity sells your car for $500 or less, you can deduct $500 or your car’s fair market value, whichever is less.

38. What is tax deduction card?

A tax deduction card is an electronic document that shows how much tax your employer must deduct before they pay your salary.

39. What is the tax deduction for mileage?

The IRS has issued the 2018 optional standard mileage rages and beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 54.5 cents per mile for business miles driven.

40. What is tax deduction for donations?

Generally, you can deduct contributions of up to 50 percent of your adjusted gross income but in some cases the limit is 20 or 30 percent.

41. What is tax deduction on mortgage interest?

Deductible mortgage interest is any interest you pay on a loan secured by a main home or second home that was used to buy, build, or substantially improve your home.

42. What is tax deduction for 2017?

Do you mean the standard deduction for 2017? The standard deduction in 2017 for single taxpayers and married couples filing separately was $6,350. It was $12,700 for married couples filing jointly.

43. What is tax deduction for child care?

The Child and Dependent Care Credit can get you 20% to 35% of up to $3,000 of child care and similar costs for a child under 13, an incapacitated spouse or parent, or another dependent so that you can work.

44. What is the tax deduction for college tuition?

Under Current IRS rules, all tuition and education-related fees are tax deductible, up to $4,000. This includes tuitions or fees paid for yourself, your spouse, or a dependent.

45. What is the tax deduction for a home office?

Standard deduction of $5 per square foot of home used for business up to 300 square feet.

46. What is tax deduction on salary?

Example Salary: Starting with your salary of 40,000, your standard deduction of $12,000 is deducted (the personal exemption of $4,050 is eliminated for 2018-2025). This makes your total taxable income amount $28,000.

47. How many tax allowances should I claim?

The more allowances you claim, the less tax your employer withholds from your paychecks. If you claim zero allowances, your employer would withhold the maximum amount possible.

48. What tax deductions can I claim?

It depends on which ones you qualify for. Check this guide for additional help.

49. What is the tax deduction for a rental property?

If you rent a property as a business, you can deduct necessary expenses. These include expenses that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance. You can also deduct the cost of certain materials, supplies, repairs, and maintenance that you make to your rental property to keep your property in good operating condition.

50. What is the tax deduction for mortgage?

Taxpayers can deduct the interest paid on first and second mortgage up to $1,000,000

51. What is a tax deduction?

A tax deduction is a reduction of your taxable income. It is usually a result of expenses, particularly those incurred to produce additional income. Deductions and exemptions reduce your taxable income. Tax credits on the other hand are a dollar to dollar reduction of your taxes.

52. What is the standard tax deductions for 2018?

From 2018 through 2025, the standard deduction will be $12,000 for single filers and $24,000 for married couples filing jointly. That’s about double the amounts of 2017.

53. What tax deductions are allowed in 2018?

Too many to mention here. Check this guide for more details. However, the standard deduction amounts will increase to $12,000 for individuals, $18,000 for heads of household, and $24,000 for married couples filing jointly and surviving spouses. For 2018, the additional standard deduction amount for the aged or the blind is $1,300.

54. What tax credits are there for buying a house?

If you’re buying a home in 2018 or later, the maximum amount of mortgage debt for which you can claim an interest deduction is $750,000.

55. What tax deductions are available for home owners?

The tax deductions available for homeowners are as follows: mortgage interest, private mortgage insurance, points home equity loan interest, property taxes, home office deduction, selling costs, capital gains exclusion, and the mortgage tax credit.

56. What type of tax deductions are available for small business?

There are too many business tax deductions to list here but the top tax deductions for a small business are as follows: car and truck expenses, salaries and wages, contracts labor, supplies, depreciation, rent on business property, utilities, and taxes.

57. What are the top deductions for 1099?

The top deductions for 1099 are as follows: mileage, health insurance premiums and medical costs, home office deduction, supplies, travel, car expenses, cell phone and business insurance.

58. What tax deductions are itemized?

The most common expenses that qualify for itemized deductions include: home mortgage interest, property, state, and local income taxes, investment interest expense, medical expenses and charitable contributions.

59. What tax deductions are available for an LLC?

LLC members can deduct startup and organizational expenses incurred during a company’s first year of operation. However, there is a limit of $5,000.

60. How do tax deductions work?

Tax deductions are subtracted from your income and what’s left is subject to state and federal income taxes. They reduce the amount of income tax you would otherwise have owed by decreasing your taxable income.

61. What does tax deduction mean?

Tax deduction is the act of reducing the taxable income of a taxpayer.

62. What is tax deduction source?

Tax deducted at source, or TDS, was introduced to collect tax at the source from where an individual’s income is granted.

63. What is tax deduction account number?

Tax deduction account number or tax collection number is a 10-digit alpha-numeric number issued by the income-tax department.

64. How do tax credits for children work?

They deduct your tax bill dollar for dollar. For example, if your tax bill is $3,000 but you’re eligible for $1,000 in tax credits, your bill is now $2,000.

65. What is tax deduction for charitable donations?

The charitable donation deduction allows you to lower your taxable income for donations or gifts to qualified, tax-exempt organizations.

66. Are medical expenses tax deductible?

In general, you can deduct qualified, unreimbursed medical expenses that are more than 7.5% of your adjusted gross income for the tax year.

67. Which expenses are tax deductible?

If you’re a business, most expenses are tax deductible. If an expense is “ordinary, necessary, and reasonable” and helps to earn business income, it’s deductible. The IRS defines as “ordinary, necessary, and reasonable expenses” expenses that are “helpful and appropriate” for a business. On a personal level, only a few expenses are tax deductible. Classic examples are health insurance premiums, tax savings for teacher, charitable gifts, paying the babysitter, and tuition costs.

68. Should I itemize my tax deductions?

You should itemize your tax deductions if your allowable itemized deductions are greater than your standard deduction or if you must itemize deductions because you can’t use the standard deduction.

69. Who should itemize tax deductions?

To figure out whether itemizing would be profitable for you, you need to determine whether the allowable expenses you paid during the year exceed the standard deduction for your filing.

70. Can you claim dependents on 2018 taxes?

If you have a family, you need to know how the IRS Defines dependents for income tax purposes. For tax years prior to 2018, every qualified depended you claim, you reduce your taxes by the exemption amount.

71. Have any tax deductions been eliminated for 2018?

A list of eliminated tax deductions for 2018 are as follows: moving expenses, home equity loan on interest, personal exemptions, deductions for state and local taxes, miscellaneous itemized deductions, and casualty and theft losses.

72. Who is an eligible dependent for a tax deduction?

To be an eligible dependent as a qualifying relative, an individual must meet for specific criteria: Relationship: A qualifying relative must have a specified relationship to the employee. Income: a qualifying relative’s gross income for the taxable year must be less than the exemption amount defined in code 151.

73. Which expenses are tax deductible?

Examples of expenses that are tax deductible include: sales taxes, health insurance premiums, tax savings for teacher, charitable gifts, paying a babysitter, lifetime learning, and unusual business expenses.

74. Where do I donate eyeglasses for a tax deduction?

Eyeglasses donated to organizations that operate primarily for religious, educational, scientific, literary or charitable purposes typically qualify as tax-deductible donations.

75. What tax deductions are available for a rental property?

If you receive income form the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return.

76. What tax deductions are there if you have a mortgage?

Most homeowners can deduct all their mortgage interest.

77. What new tax deductions are available for 2018?

The new tax law nearly doubles the standard deduction amount.

78. Which tax deductions can I claim?

This varies from person to person.

79. What types of tax deductions are allowed in 2018?

Here are for deductions you should take in 2018 if they apply to you: IRA, student loan interest, educator expenses, casualty and theft losses, charitable contributions, home mortgage interest, and dental and medical expenses.

80. What’s tax deductible when you are buying a house?

You can claim mortgage interest, points, property tax deduction, and private mortgage insurance deduction.

81. What tax deductions are there for new home owners?

You can claim mortgage interest, points, property tax deduction, and private mortgage insurance deduction.

82. What is the definitions of tax deductible?

The definition of tax deductible: something that can be deducted form taxable income when calculating income tax due.

83. What tax deductions are available for 1099?

Top 1099 Tax deductions: mileage, health insurance premiums and medical costs, home office deduction, supplies, travel, car expenses, cell phone, and business insurance.

84. What tax deductions should be itemized?

If you choose to itemize your deductions you should include all your eligible tax deductions. You might want to review the deductions you claimed on your 2017 return and think about how they might change in 2018.

85. What tax deductions are available for donations?

You can deduct charitable donations. However, to take a deduction for a charitable contribution, you’ll need to forgo the standard deduction in favor of itemized deductions.

86. What’s tax deductible interest?

It’s interest paid that you can deduct from your taxable income, such as the interest paid on a mortgage or student loans.

87. What tax deductions can I expect when buying a house?

You can claim mortgage interest, points, property tax deduction, and private mortgage insurance deduction.

88. What tax deductions are available for donating a car?

If you donate it to an eligible charity you can claim a charitable donation deduction, which will reduce your taxable income.

89. Are there tax deductions available when working from home?

If your office space takes up 20% of the house, you can deduct 20% of your bills for utilities, homeowner’s insurance, homeowner’s association fees, security, and general repairs and maintenance.

90. How does tax deduction work?

Tax deductions reduce the amount of taxable income from your earnings.

91. How are tax deductions calculated?

Eligible tax deductions reduce your taxable income.

92. What is tax deductible interest?

The tax-deductible interest is a borrowing expense that a taxpayer can claim on federal or state tax return to reduce taxable income.

93. What tax deductions are available for a rental property?

If you receive rental income from the rental of a dwelling unit, you can deduct expenses incurred toyou may deduct on your tax return.

94. What tax deductions are available if I have a mortgage?

You can deduct the interest that you pay on your mortgage loan if the loan meets the IRS mortgage requirements.

95. What tax deductions are new for 2018?

The new tax law nearly doubles the standard deduction amount.

96. What tax deductions can I claim?

There are many tax deductions you can claim. It all depends what you qualify for. Some deductions you can claim are sales tax, health insurance premiums, charitable gifts, lifetime learning and expenses from looking for work.

97. What types of tax deductions can I claim in 2018?

There are many tax deductions you can claim in 2018. For instance, you can deduct qualified, unreimbursed medical expenses that are more than 7.5% of your adjusted gross income, sales tax, health insurance premiums, charitable gifts, lifetime learning and expenses incurred while looking for work.

98. What is tax deductible when buying a house?

You can claim mortgage interest, points, property tax deduction, and private mortgage insurance deduction.

99. What tax deductions are available for homeowners?

Homeowners may deduct both mortgage interest and property tax payments as well as certain other expenses from their federal income tax.

100. What tax deductions are available for small businesses?

Tax deductions for a small business include any reasonable, ordinary, and reasonable business expense. It includes things like car and truck expenses, salaries and wages, contract labor, supplies, depreciation, and utilities.

101. What does it mean if something is tax deductible?

It means it is an expense you can deduct from your taxable income.

102. What tax deductions are available for form 1099?

The “1099” part of the name refers to the fact that independent contractors receive a form 1099 at the end of the year, which reports to the IRS how much money was paid to the contractor.

103. What tax deductions need to be itemized?

The most common expenses that must be itemized include: home mortgage interest, property, state, and local income taxes.

104. What types of donations are tax deductible?

There are three major types of charity that may qualify for tax-deductible donations: public charities, which includes religious organizations, private foundations, and private operating foundations. Donations to these organizations can be tax deductible if all other relevant requirements are met.

105. How do tax credits work?

Unlike tax deductions, tax credits reduce the amount of your actual tax, which works out better financially

106. How much tax is deductible per child?

For 2018, the recently passed GOP tax reform bill double the amount of the child tax credit from $1,000 to $2,00 per qualifying child.

107. How much tax gets deducted from my salary?

The rate is 2.9 percent as of 2018.

108. Who can receive tax deductible donations?

There are three major types of charity that may qualify for tax-deductible donations: public charities, which includes religious organizations, private foundations, and private operating foundations. Donations to these organizations can be tax deductible if all other relevant requirements are met.

109. What types of income are non-taxable?

Although most types of income are taxable, there are exceptions. These include (with exceptions) income from the sale of your primary residence, life insurance money, non-taxable gifts, child support, and personal injury awards.

110. What is the tax deduction percentage?

“Tax deduction percentage” is not a widely used term but it could mean the percentage of your taxable income you need to pay in taxes. The federal income tax has seven brackets, each with its own tax deduction percentage. The amount you owe depends on your income and filing status.

111. What are some examples of tax deductions?

The most common expenses that qualify for itemized deductions include: home mortgage interest rate, property, state, and local income taxes, and investment interest.

112. What are tax deduction cards?

A tax deduction card is an electronic document which shows how much tax an employer must deduct before paying the employees their salary for work they’ve performed.

113. Are gifts tax deductible?

Only gifts made to charitable organizations recognized as such by the IRS are deductible.

114. Are donations tax deductible in 2018?

The charitable donation deduction allows you to lower your taxable income for donations or gifts to qualified, tax-exempt organizations.

115. Are tolls tax deductible?

Tolls and gas are not deductible for regular transportation to work but are deductible for work related trips.

116. Are sponsorships tax deductible?

Yes, a sponsorship can be a tax write-off.

117. Are dividends tax deductible?

Corporations may not legally deduct the dividend payments before taxes.

118. Are braces tax deductible?

The medical and dental expenses deduction, which includes your deductible orthodontics costs, only allows a deduction for costs in excess of a specified percentage of your adjusted gross income.

119. Are tithes tax deductible?

Yes, as long as the donations are made to an eligible organization.

120. Are new eyeglasses tax deductible?

To claim your glasses a tax deduction you need to include the expense as part of your itemized deductions on form 104, schedule A.

121. Are contact lenses tax deductible in 2018?

Contact lenses are tax deductible, but very few tax payers get to deduct them because you get to deduct such costs only to the extent that unreimbursed expenses exceed 7.5% of your adjusted gross income.

122. Are textbooks tax deductible?

The tuition and fees deduction allows you to write off up to 4,000 dollars of qualified higher education expenses.

123. Are meals tax deductible?

Meal and entertainment (M and E) deduction. Tax payers used to be able to deduct 50% of the costs of meals and entertainment directly related to or associated with business.

124. Can I use deductions if I don’t have a receipt?

Yes, however it is always advisable to have documentation of any deduction that you claim on your income tax return, in case the IRS decides to take a closer look at it. However, donations valued at less than $250 don’t require a receipt if it’s impractical to get one.

125. Are there new tax deductions for dependents in 2018?

The simple answer is yes.

126. What is an example of a tax deduction?

A deduction is any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.

127. What is an example of a tax deduction for a child?

If you have children who are under age 17 at the end of the calendar year you can get a tax credit of up to 2,000 per child on your tax return.

128. What is an example of a typical tax deduction for a mortgage?

Most homeowners can deduct all their mortgage interest.

129. What types of tax deductions can I get if I have an IRA?

You can deduct your contribution as long as you earn income during the year.

130. What types of deductions can I get if I have a ROTH IRA?

Roth IRA deductions aren’t tax deductible.

131. What types of deductions can I get if I have a 401K?

Qualified contributions to a 401K are deducted from your taxable income. Distributions from a 401K are tax free and not included in your taxable income.

132. What types of tax deductions are available for Uber drivers?

Some of the deductions for Uber drivers are as follows: Standard mileage, car payment, depreciation, interest on auto-loan and gas.

133. What types of tax deductions are available if I own property?

The most common expenses that qualify for itemized deductions include: Home mortgage interest, property, state, and local income taxes and interest expense.

134. What does the tax deduction on my salary mean?

A tax deduction is a deduction that lowers a person’s tax liability by lowering his taxable income. However, depending on the context it can also refer to the amount deducted from your income for taxes.

135. What types of deductions are available for medical expenses?

The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income for 2017 and 2018.

136. Are there new tax deduction for having a home office in 2018?

If your office space takes up 20% of your house, you can deduct 20% of your bills for utilities, home owner’s insurance, HOA fees, security, and general repairs and maintenance.

137. What tax deductions are available for a home loan?

You can deduct interest on up to 750,000 dollars of mortgage debt incurred to buy or improve a first or second residence.

138. Are there tax deductions for college tuition?

Up to a $4,000 tax deduction per return.

139. Are there tax credits for child care?

For qualifying child under age 13 or disabled dependent of any age may qualify for a tax credit.

140. What is a sales tax deduction?

If you file a 1040, you can claim state and local income tax and sales tax.

141.What is the meaning of a standard tax deduction?

The dollar amount that non-itemizers may subtract from their income before income tax is applied.

142. What is tax deductible interest?

The IRS allows you to deduct certain expenses from your total income to arrive at taxable income, which is the portion of subject to tax.

143. Are there tax deductions for alimony?

The IRS allows the paying spouse to deduct the alimony payments for tax deduction purposes.

144. Are there tax deductions for sponsorships?

You can generally deduct reasonable advertising expenses that are directly related to your business actives.

145. Tax deductions for college fees?

Yes, you can claim up to $4,000 dollars per year.

146. Are there tax deductions available for pension contributions?

Contributions to IRS-qualified pension plans are often tax deductible, whether it is the employer or employee making contributions.

147. What are common types of donations are tax deductible?

Typically, most charitable organization donations are tax deductible as long as they are qualified charitable donations.

148. What is a tax deduction form?

The official government documents you are required to fill out when you pay your taxes.

149. Are there tax deductions for medical expenses?

The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income in 2017 and 2018.

150. Can I deduct my tax preparation from my taxes?

Only if you’re a self-employed. From 2018 to 2025 tax preparation fees are not deductible unless you own your own business.

151. Is mortgage interest tax deductible?

On first and second mortgages, taxpayers can deduct up to one million dollars in mortgage debt.

152. Can I deduct the money I spend on child care?

Yes, you can get a deduction for a qualified child under 13 or disabled dependent of any age.

153. Do I get a tax deduction for dependents I claim?

The simple answer is yes.

154. Is there a tax deduction for buying a new home?

Yes, and you can deduct the interest on up to $750,000 of mortgage debt.

155. Is there a tax credit for having medical insurance?

Yes. The premium tax credit is a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange.

156. Is there a tax deduction available for buying a car?

Yes, if you are self-employed and use the car for business purposes.

157. Is there a tax deduction for donating a car?

You can claim up to $500 for donating your car to a charitable organization.

158. Are tools tax deductible?

You can only deduct tools and other expenses exceeding 2% of your adjusted gross income and they must be necessary for your job. However, if you are self-employed you can deduct tools as a business expense.

159. Are there tax deductions for work tools?

Yes, you can deduct tools and other expenses exceeding 2% of your adjusted gross income. If you are self-employed you can deduct tools as a business expense.

160. Are there tax deductions available for hosting a private function?

If your private function is held at a qualified organization, you may be able to deduct membership fees or dues you pay. It may also qualify as a business expense.

161. Do I get a donation if I donate to Toys for Tots?

Yes, Marine Toys for tots Foundation is exempt under section 501(C) (3).

162. Can I deduct the tools of trade?

Yes, as long as they exceed 2% of your AGI. If you’re self-employed you can claim tools as a business expense.

163. Are there tax deductions if you volunteer at a non-profit?

Although you can’t deduct the monetary value of the time you invest in a non-profit, you may be able to deduct the expenses involved in volunteering, such as your mileage, flights, donations, and so on.

164. Is there a tax deduction available if I donate to my church?

Yes, as long as the church is IRS-qualified. However, only if you itemize your expenses on schedule A when you file.

165. What tax deductions are available for donations made?

All donations, up to 50 percent of your income, to eligible organizations are tax deductible. The charitable donation deduction allows you to lower your taxable income for donations or gifts to qualified, tax-exempt organizations. However, to get the deduction, you must file Form 1040, the form you use for an individual or joint income tax return. You also must itemize your deductions on Schedule A on Form 1040.

166. Is there a tax deduction on salary?

Generally speaking, the salaries, wages, commissions, and bonuses you have paid to the employees of your small business are tax deductible expenses if they are deemed to be ordinary and necessary.

167. Are there tax deductions available if I have a home office?

If your office space takes up 20% of your house you can deduct 20% of your bills for utilities, home owner’s insurance, home owner’s association fees, security and general repairs and maintenance.

168. Are there tax deductions available for having a home loan?

Taxpayers can deduct the interest paid on first and second mortgages up to a million dollars in mortgage debt.

169. Are there tax deductions for college tuition?

Tuition and Fees deduction can reduce the amount of your income subject to tax by up to 4,000 dollars.

170. Is there a tax credit if I have cancer?

You may be able to lower your taxable income by deducting the medical expenses you paid as a medical expense deduction.

171. Is there a tax deduction for maintenance payments?

In certain circumstances the IRS allows the paying spouse to deduct the alimony payments for tax reporting purposes

172. What tax deductions are available for sponsorship?

You can usually deduct a sponsorship as a business expense.

173. Are there tax deductions for college tuition?

Yes, up to $4,000.

174. Are there tax deductions for pension contributions?

Yes, IRS qualified pension plans offer tax benefits to contributors whether it is the employer, or employee making contributions or both.

175. What is the difference between a tax deduction and a tax credit?

A tax credit is a dollar for dollar reduction of your income tax liability. A deduction lowers your taxable income.

176. What is a tax deduction form?

This is a standard federal tax form used to report an individual’s gross income.

177. Do I get a tax credit for having health insurance?

A refundable credit does exist if you meet certain requirements and file a tax return.

178. What is the difference between a tax deduction and an exemption?

Exemptions relate to people, deductions are usually expenses.

179. What is the difference between tax offset and a deduction?

A deduction is a reduction in your taxable income. An offset directly lowers the tax you owe. For example, $1,000 in deductions will only reduce your tax owed by a percentage dependent on your tax bracket. An offset (sometimes called a rebate) will directly reduce the tax owed.