Do you want to save money on your 2022 tax return? Well, then don’t miss out on valuable tax deductions. Using tax software to prepare your return will make life a lot easier, especially now that it’s crunch time. ezTaxReturn.com can help you find last-minute deductions you may have overlooked and help you claim them. Here are some last-minute tax deductions you don’t want to miss.
Medical and dental expense deduction
If you itemize, the IRS lets you deduct a portion of your medical and dental expenses on your tax return, so keep your receipts. The expenses must be related to the diagnosis, cure, treatment or prevention of a disease. You can include things like the cost of eye exams, hearing aids, in vitro fertilization, therapy and more. For tax year 2022, you can deduct any expenses for you, your spouse and dependents that are more than 7.5% of your adjusted gross income. If you have medical bills that weren’t covered by insurance, ezTaxReturn can help you claim the deduction and lower your tax bill.
The contributions you make to a traditional individual retirement account (IRA) are often deductible. However, your deduction may be limited if:
- You or your spouse are covered by a retirement plan at work
- Your modified adjusted gross income (MAGI) exceeds the annual limits
Act fast because you only have until April 18, 2023 to make 2022 IRA contributions. The maximum you can contribute is $6,000 ($7,000 if you are aged 50 plus).
Student loan interest deduction
Federal student loans payments are paused until June 30, 2023. However, those with private student loans must make their payments as usual. If you’re making student loan payments for you, your spouse or your dependent, up to $2,500 of the interest you paid is deductible. Best of all, you don’t need to itemize to claim the deduction.
Educator expense deduction
Educators can deduct up to $300 of out-of-pocket classroom expenses on their federal tax return. If you and your spouse are both educators and you file a joint tax return, the deduction limit doubles to $600. Educators can deduct the cost of professional development courses, books, supplies and computer equipment. You can also include items bought to prevent you and your students from spreading COVID-19 around the classroom. For example, face masks, hand sanitizer, disposable gloves, disinfectant and other items recommended by the Centers for Disease Control and Prevention (CDC). Be sure to keep track of what you bought and how much you paid, so you can deduct it on your taxes.
Mortgage interest deduction
Paying your mortgage can help you save money on your taxes. Homeowners who itemize can deduct the interest paid on mortgages up to $750,000 ($375,000 for married couples filing separate). If you purchased your home before December 15, 2017, the cap is $1 million ($500,000 if married filing separately). The loan must be used to buy, build or significantly improve your main or second home. By now, your mortgage lender should’ve mailed you a Form 1098 detailing how much you paid in mortgage interest and points during 2022. ezTaxReturn can walk you through the steps of claiming your deduction.
Charitable contribution deduction
Did you know that donating to your favorite charity can reduce your taxable income? That’s right! Doing a good deed for someone else can be beneficial for you too. You can deduct money or property given to:
- Charities like Boys & Girls Clubs of America, Goodwill, American Red Cross, United Way, Salvation Army, CARE, etc.
- Nonprofit organizations that maintain public parks
- Nonprofit schools, hospitals, and museums
- Churches, mosques, synagogues, temples, and other religious organizations
- Volunteer fire companies
Keep track of your donations, no matter how big or small the amount. Hold on to any receipts, bank statements or credit card statements that show the organizations name, the amount you donated and the date. Donations of $250 or more also require you to get a written letter from the charity. You must itemize to claim your charitable contributions.
Home office deduction
Home office expenses are deductible, but only for those who are self-employed. Your home office must also meet certain standards to qualify. For instance, the office must be regularly and exclusively used for business purposes. If the room serves as a part-time guest room, craft room or play area for your kids, you cannot claim the deduction. The rules also state that the space must be the main place where you meet with clients. Using the simplified method, you can deduct $5 per square foot of your home office up to 300 square feet, or $1,500.
File your taxes now with ezTaxReturn. We ask simple questions to determine which deductions you qualify for and complete all the proper forms and calculations. 100% accuracy, guaranteed. Start now.