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As the tax year comes to an end, it is important to review your expenses and ensure you are maximizing your itemized deductions. Proper planning can help reduce your taxable income and increase your potential refund. Here are some key tips to consider before filing your taxes.
Review Medical Expenses
Medical and dental expenses that exceed 7.5% of your adjusted gross income can be deducted. Gather receipts and records of all qualifying expenses incurred during the year. Consider scheduling any necessary procedures before year-end to maximize deductions.
Charitable Contributions
Donations to qualified charities are deductible if you itemize. Ensure you have receipts or acknowledgment letters for donations made during the year. Donating appreciated assets can also provide additional tax benefits.
Mortgage and Property Taxes
Paying your property taxes before year-end can increase your deductions. Review your mortgage statements to confirm all interest paid is properly documented. Consider making an extra payment if it benefits your deduction total.
Miscellaneous Deductions
- State and local income taxes
- Investment expenses
- Unreimbursed employee expenses
- Tax preparation fees