You've probably already received your W-2 or 1099 and are gearing up to file your taxes. And you're probably hoping for a nice return as well, especially if you can claim a few tax deductions this year.
But tax laws have been in flux over the past couple years: some deductions are new, some are gone, and some have shifted a little bit. So here are five big tax deductions you should look for in your filing, and several that are no longer applicable.
If you recently purchased a home, this might be the first on your list of deductions as well. Just be aware that not all residences and not all loans fall under this rule.
This is one area that has changed recently. The latest tax bill capped what federal taxpayers may deduct for state and local property taxes at $10,000. That had some scrambling last year to try and prepay those taxes before the bill went into effect.
Even with insurance, healthcare can be costly. Fortunately, you can write off some of those costs, as long as those costs are "extraordinary," meaning that any medical expenses that are greater than 7.5 percent of your adjusted gross income can be written off. So get ready to do some math.
Along with interest on your mortgage, student loan interest and investment interest is also deductible. With a few caveats, of course. As long as you paid the interest on your student loans and meet certain income requirements, it's deductible. Investment interest is generally limited to the net investment income of the taxpayer for the year, but you can carry the deduction forward if you exceed your limit this year.
People living with physical or mental disabilities that limit their employment or substantially limits major life activities may be eligible for several tax deductions, credits, and exemptions.
First the good news, then the bad. State and federal tax laws are complicated. For help, contact a local tax attorney.