Tax Season is Underway: Don’t Forget these Tax Deductions
As you gear up to file your 2019 taxes this year, make sure you understand the full range of tax deductions available. Here are a few you might not be aware of.
1. Health Insurance Premiums
Deductible medical expenses must exceed 10 percent of your adjusted gross income to be claimed as an itemized deduction. However, if you’re self-employed and pay your own health coverage, you may be able to deduct 100 percent of your premium.
2. Teacher Tax Savings
Qualified K-12 educators can deduct up to $250 for classroom materials.
3. Charitable Gifts
In addition to money or goods given to charitable organizations, out-of-pocket expenses for charitable work also qualify.
4. Paying the Babysitter
You may be able to deduct babysitter expenses if you’re paying someone to watch the kids while you freely volunteer for a recognized charity.
5. Lifetime Learning
You can deduct up to $2,000 per year, taking off 20 percent of the first $10,000 you spend for post-high school education. This does phase out at higher income levels but doesn’t discriminate based on age.
6. Self-Employed Social Security
Although self-employed individuals have to pay 15.3 percent of your income for social security and Medicare taxes, you do get to deduct the 7.65 percent employer portion off your income taxes.
Contact Georgia Heritage Federal Credit Union for more information.