IRA contributions refer to the money you put into an Individual Retirement Account, a savings plan for your future. Even if you don’t itemize deductions on your taxes, you can still deduct these contributions from your income.
HSA contributions are the amounts you add to a Health Savings Account, which is a special account for paying medical expenses. If you have a high-deductible health plan, you can use this account.
Good news for those still paying off student loans. You can deduct up to $2,500 of the interest you paid on your loans in a year. This deduction applies even if you don’t itemize deductions.
Educator expenses are the costs teachers pay out of their own pockets for classroom supplies.m If you’re a teacher, instructor, counselor, or principal working at least 900 hours a school year in K-12, you can deduct these expenses.
Another popular way to save on taxes is by deducting business expenses. If you run your own business, you can deduct expenses such as office supplies, travel costs, and even a portion of your home if you use it for work.
Moving expenses for military members are a bit special. If you’re in the armed forces and your move is due to a military order or a permanent change of station, you can deduct these expenses.
One ex-spouse might pay alimony payments to the other after a divorce, which is meant for support. If you make these payments based on agreements made before 2019, you can deduct them from your income on your taxes.
The most common way to reduce your taxable income is by making charitable contributions. When you donate money, goods, or services to a qualified charity, you can deduct the value of that donation from your taxes.
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