• Post last modified:October 5, 2020
  • Post category:Insurance

If there’s one thing about doing your taxes, there’s one things we’re all looking for: tax deductions. Now while the most popular deductions for the vast majority of us are mortgage interest, real estate taxes and charitable donations. However this past year there are some rule changes that could affect you when you file your taxes, so listen up! Again, we’re a CT insurance company, but we’re here to help you out in any way we can!

The main change has now been that, depending on your income, some  itemized deductions won’t be allowed.  This means that if you’re a single filer whose adjusted gross income exceeds $250,000 or a  joint filler (such as if you have a spouse) with excess of $300,000, you will see a portion of deduction disappear.  I know, it stinks.  But in order to get around this issue, you should mainly look at all the deductions that come on the very  first page of the return because these will not be affected by your income level.

If you’re unsure of where to look, below are some popular examples of deductions:

Teaching expenses: We all know that no matter how big a school budget is, teachers by and large still have to purchase certain things for their classrooms, especially elementary school instructors.  The cost of this sacrifice is tax deductible though, with a $250 cap.

Moved recently?: Say you got a new job or were transferred and need to move, the costs of conducting this move can be tax-deductible.  There are some stipulations however, such as distance from your old home, so make sure to look into this further if you fall into this scenario.

Own your own business? Then look to your health insurance costs: Being a business owner certainly has its perks, but one of the downsides is paying your health insurance premiums you and your family.  However, these costs can go towards your adjusted income and thus lower your taxable income.

Individual Retirement Accounts: If you have an IRA, you’re allowed to deduct the contributions to your account up to $5,500, and jumps to $6,500 if you’re 50 or older.

Happy Filing!