TAXES | 7 Expenses You Can Still Deduct
The 2017 tax reform, also known as the Tax Cuts and Jobs Act (TCJA) dramatically increased the standard deduction taxpayers can claim when filing their taxes, which means many tax payers will choose to not itemize deductions for their 2018 taxes. However, here are 7 expenses that taxpayers can deduct even if they are not itemizing:
1. Retirement Account Contributions—taxpayers can still reduce their adjusted gross income (AGI) by based on contributions made to qualified retirement accounts like IRA’s, 401(k)’s, among others.
2. Health Savings Account (HSA) Contributions—taxpayers who contribute directly to an HSA, as opposed to having the contribution taken out of their paycheck, can reduce their AGI by their HSA contribution—up to $3,450 for individuals and $6,900 for families.
3. Alimony—taxpayers paying alimony as a result of a divorce that settled before 12/31/2018 can reduce their AGI by the amount of alimony paid.
4. Self-Employment Taxes—self-employed taxpayers can deduct half of the employer’s share of their Social Security and Medicare taxes.
5. Self-Employed Health Insurance—self-employed taxpayers can deduct health insurance premiums for themselves and their qualifying dependents.
6. Job-Related Expenses—taxpayers in certain professions, like teachers, can deduct some job-related expenses.
7. Student Loan Interest—taxpayers can reduce their AGI by the lesser of $2,500 or the actual amount of student loan interest paid in 2018.
As always, I recommend you consult with your tax advisor to determine how these changes may affect your personal circumstances.