The best tax preparers in Weston can help you file your federal and state taxes. However, it’s also your responsibility to understand what goes into your tax filing. In this context, you should know what personal income and expenses you can deduct from your federal taxes at each year’s end.
Here are some expenses that you can subtract from your yearly personal federal tax filing:
The government will allow you to deduct donations that you make toward a charitable organization. You simply need to itemize your contributions throughout the year to see if it exceeds the standard deductions set by the Internal Revenue Service or the IRS.
Generously donating could make up to 60% of your adjusted gross income deductible from your yearly taxes. However, you will need to maintain an accurate and updated record of your grants, including tax receipts from the charity. You also have to obtain proof of value appraisal for in-kind gifts. Lastly, you must ensure that the charity is a registered 501(c)(3) organization.
The United States system charges state and federal taxes to everyone who earns income within its jurisdiction. The IRS recognizes all local and state taxes payments as non-taxable. Hence, you can deduct up to $10,000 from your annual personal income taxation.
You’ll need a Form W-2 from your employer to deduct state taxes withheld from your salary. If you’re self-employed, you’ll have to maintain a detailed record of quarterly taxes paid for the year. This record will be the supporting document for your claims.
You are obligated to provide childcare and support, even if you’ve already separated or divorced from your spouse. Fortunately, you can add any expenses towards childcare and alimony to your yearly itemized list of deductions.
Bear in mind, however, that you can no longer claim tax cuts for cash spent on child support if your divorce took place after December 31, 2018. This is due to the Tax Cuts and Jobs Act of 2017, which introduced various amendments to what can be claimed as non-taxable income.
Take the guesswork out and avoid legal hurdles by letting a professional handle your tax filing. Contact us now to know more about our services.