You may not have to organize all those receipts that you have filed in different places around your house. While many people think that claiming the easy standard deduction puts you on a higher tax bill, many people overlook information about other “adjustments to income” that the IRS has available to taxpayers filing Form 1040. these “adjustments to income” to your form means you don’t have to itemize.
Educator expenses are included in this category. This deduction is for K-12 teachers, principals, instructors, counselors, and aides who worked at least 900 hours in the tax year. This deduction is up to $250 (or $500 if you are married filing jointly and both you and your spouse are qualified educators) for qualified expenses like books and school supplies.
Students, and their parents or other payers of their loans, can also deduct expenses from their tax bill. Whoever pays the loan, be it the student or her parents, aunt, uncle, grandparents, etc. – you can claim a deduction for interest on your student loan. In addition, you may be able to get a tuition and fees deduction if you paid for an education at an eligible school (including colleges, universities, vocational schools, or other post-secondary educational institutions funded by the Department of Education).
Alimony payments as part of an official settlement are also deductible, but property settlements and voluntary payments don’t count. Child support payments are tax neutral.
With respect to employment and savings plans, you can deduct any IRS contribution that meets certain criteria. IRS Roth contributions are not deductible, but can count toward a saver’s credit. If you have a health savings account (HSA), you can also deduct your contributions to it. These accounts were created to help taxpayers save for medical expenses. While your contributions may count, employment contributions, rollovers, and qualified IRA distributions will not.
If you are self-employed, be aware of the self-employment tax deduction. Self-employed workers have to take out both their personal taxes and the employer’s taxes, called the self-employment tax. In other words, you’re paying payroll taxes, including Social Security and Medicare. However, you can deduct half of the self-employment tax you paid as a non-itemized deduction. As a self-employed person, you can also deduct the costs of health benefits for you and your family. In other words, if you pay for your own plan, you may be able to deduct the amounts paid by the plan without itemizing them.