Five Personal Tax Deductions to Remember This Tax Season

As tax season rolls around, it’s important to know what you can deduct from your taxes to ensure you are only paying what you have to. While many people simply take the standard deduction and don’t itemize their taxes, this doesn’t mean you don’t have other things you can deduct. This tax year it’s time to pay attention to some of your costs that you can deduct, even when you take the standard deduction on your taxes.

The Student Loan Interest Deduction

If you have been paying off student loans, the interest that you pay off this year can be deducted from your taxes. You can claim up to $2500 in student loan interest deductions, as long as the loan was used for higher education and the interest was paid in the last year. You can even pay off more than the loan than you are required to this year to get your deduction up to the $2500 cap.

The Earned Income Tax Credit

This is not really a deduction, but a tax credit for individuals who are low to moderate income. For singles, you can deduct $503, and for families with three children or more, the total credit is $6,242.

An IRA Deduction

You can reduce your taxable income by investing money into an IRA this year. Your total investment can’t exceed $5,500 as of 2015, although there are exceptions if you haven’t been investing and you are over 50 years old.

Moving Expenses

If you moved this year, you can deduct moving expenses, as long as you moved for a new job.

Medical Mileage

If you find yourself traveling long distances for necessary medical care, you can deduct medical mileage. The current rate for medical mileage is .19 cents a mile. You can also deduct mileage at the rate of .14 cents a mile if you drive your car for charitable organizations.

If you are overwhelmed with trying to pay your minimum payments and you are considering bankruptcy, it’s time to call Clark & Washington at (770)285-0665 to discuss your options.