These popular tax deductions are still worth claiming

Among the many changes the 2017 tax law enacted are new limits on previously deductible items. But filers who typically itemized deductions in the past can still take some popular items as deductions on theirĀ  2018 tax return. If they total more than your standard deduction, you can cut your tax bill or increase your refund. Here are some that are still claimable:

Medical and dental expenses

This includes your unreimbursed expenses for medical and dental services and related equipment. It also includes the miles you drive to and from medical care at a rate of 18 cents per mile.

For taxpayers who expect to have a considerable amount of out-of-pocket medical expenses, this is a potentially valuable tax-saving opportunity. That’s because taxpayers who itemize can deduct qualifying medical expenses that exceed 7.5 percent of their adjusted gross income (AGI) for 2018. In 2019, the income threshold will return to 10 percent.

Taxes you paid

There was a big change to a popular deduction for state and local taxes, or SALT, which had been widely claimed by those reside in high-tax states. This deduction includes a range of taxes including income, real estate and sales tax. Although SALT can still be claimed, it will benefit fewer taxpayers in 2018 because the new tax law capped the deduction at a maximum of $10,000.

The rule still says you must choose between deducting sales or income tax but not both. Also, taxes paid on property owned outside the U.S. are no longer deductible.

See the full article on MSN News…

by Ray Martin

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