Top 10 Tax Deductions in US



#1 Home

  • Mortgage Interest
  • Mortgage Insurance Premium
  • Property Tax Paid (a.k.a Real Estate Tax)
  • Points Paid & Closing Cost during Home Purchase
  • Purchase of Energy Efficient Appliances (Energy Tax Credit)
  • Installation of Energy Efficient Windows (Energy Tax Credit)
  • Business Use of Home

#2 Children

  • Child Tax Credit
  • Day Care Expenses (if both parent are working)
  • Contribution to Education Savings Plan
  • Student Loan Interest

#3 Auto

  • Car Registration Fees (VLF)
  • Tax Credit on Purchase of Alternate Fuel Vehicle / Car (Example: If you purchase electric car such as Chevy Spark)
  • Business use of Personal Vehicle (Example Pizza Delivery using personal vehicle)

#4 Retirement Account / Stocks

  • Contribution to Traditional IRA or Roth IRA account
  • Savings Bond
  • Selling Stock holding of after 1year will save up to 15-20% depending on your AGI. Refer Short Term Capital Gain Vs Long Term Capital Gain

#5 Medical Related Expenses

  • Contribution to Health Saving Account
  • Contribution to Health Insurance (Typically adjusted in Pay Statement)
  • Medical Expense can be deducted, if the Medical Expense during year is more than 10% of AGI

#6 Taxes Paid

  • State and Federal Tax Paid during Filing Tax
  • Foreign Tax Paid

#7 Misc

  • Donation to Chartiable Trust
  • Food / Cloth Donation to Charitable Trust
  • Theft

For now only Top #7 J

  

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