What Are the IRS and State Tax Deductions?

Tax deductions reduce your taxable income and may increase your tax refund based on the number of deductions you claim.

What Are the Federal Tax Deductions?

Below are the tax deductions you may qualify to claim on your federal tax return: 

Tax Exemptions

A tax exemption reduces your Adjusted Gross Income (AGI) and ensures that not all of your income is taxed. You can claim personal exemptions (based on your filing status) and dependent exemptions.

Standard Deductions

A standard deduction reduces the amount of your taxable income. It's a specific dollar amount based on your filing status. The amounts for each filing status vary by Tax Year. If you claim the standard deduction, you cannot itemize deductions. 

Itemized Deductions 

If the total amount of your deductions are greater than the standard deduction amount for your filing status, you should itemize your deductions. You can itemize various expenses such as: 

  • Medical and dental
  • State and local income taxes/state and local sales taxes
  • Home mortgage and investment interest
  • Charitable contributions
  • Casualty and theft losses
  • Job-related expenses

Deductions for Homeowners

If you itemize your deductions, you may qualify to claim the following expenses on your tax return: 

  • Home mortgage interest payments
  • Real estate taxes
  • Mortgage points
  • Mortgage insurance premium payments

Job Tax Deductions

You can claim various deductions related to your work including: 

  • Depreciation for a computer or cell phone required as condition for your employment
  • Expenses related to helping you find employment
  • Up to $250 of qualified educator expenses ($500 if both you and your spouse are educators) via the Educator Expense Deduction
  • Work clothes/uniform expenses (cost and upkeep)

Medical Tax Deductions

You may qualify to claim these medical expenses if you itemize:

  • Health insurance premiums that are more than 7.5% of your income
  • Health savings account contributions
  • Costs of equipment, supplies, and other devices
  • Dental expenses

Student Tax Deductions

If you are a student, you might qualify for the following deductions to help with your education expenses:

  • Tuition and fees
  • Student Loan Interest

Deducting Charitable Donations

You could deduct the following charitable donations on your tax return: 

  • Cash contributions
  • Fair-market share of clothing, household, items, and vehicles
  • Contribution of stocks 

Car and Travel Tax Deductions

You can claim vehicle or travel expenses for the following purposes: 

  • Business
  • Medical
  • Charity

You can either deduct the actual expenses or the standard rate per mile driven for any vehicle you lease or own.

Miscellaneous and Other Tax Deductions 

Here are other expenses you may be able to deduct from your taxes: 

  • Gambling losses 
  • Foreign taxes
  • Investments
  • Tax return preparation fees

What Are the State Tax Deductions?

Most state tax deductions are connected to federal deductions. however, they have many differences based on the individual state. Learn more about specific state tax deductions on Taxpert.com's separate state pages. 

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