Filing income taxes is no one’s favorite activity, but it is something that absolutely must be done every single year for filers who make over a certain dollar amount and/or want their refund – if owed a refund. Many people choose to itemize deductions because they get a larger deduction and a much lower tax liability with itemized deductions than they do a standardized deduction. Here are the five most common itemizations on income tax returns.
Mortgage Interest
If you own a home, you can claim your mortgage interest. First and second home loans qualify for this particular deduction. What this happens to be is a deduction for the interest you pay on the loan each year, and it significantly lowers you income tax liability.
Charitable Donations
Everything you donate to charity comes with a value. Clothes, shoes, baby items, furniture, cars, money and time; they all come with a value that you can write off on your income taxes each and every year. These things really add up if you make significant donations to your church, school or even just your local charities.
Medical Expenses
Not only do you get to claim your kids when they’re born, you get to claim your medical bills as well – or any medical bills you pay throughout the year even if you didn’t have children. As long as you pay the cost of medical, dental, diagnosis, treatment or prevention of any type of disease in particular, you’re going to get a good return on your costs.
Income Taxes
If you pay local and/or state income taxes throughout the year, you get to claim them on your income tax return. These fees are only taxable, however, if they are not exempt from income tax. You need to check with your state to see if yours are eligible.
Property Taxes
If you own property, and you pay taxes on it, you can deduct that from your income tax return. Anything paid to your property taxes toward the value of your land and/or home is taxable. It might not be much, but it is going to help you lower your income taxes.
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