TaxIQ

Deduction Discovery: Uncover Tax Savings

Welcome to the Deductions module of TAX IQ, where we unravel the world of tax deductions to empower you on your journey to maximize your savings!

Details: Taxpayers can choose the standard deduction based on their filing status. For the tax year 2022, the standard deduction amounts are:

Documentation: No specific form is needed if taking the standard deduction.

Details: Taxpayers can choose to itemize deductions instead of taking the standard deduction. Common itemized deductions include:

Documentation: Keep records of all relevant expenses and use the appropriate tax forms: Schedule A (Itemized Deductions)

Details: Taxpayers may qualify for education-related deductions or credits, such as the American Opportunity Credit or Lifetime Learning Credit.

Documentation: Forms 1098-T from educational institutions and records of qualified expenses.

Details: Homeowners may be eligible for deductions related to their home, including mortgage interest and property taxes.

Documentation: Form 1098 (Mortgage Interest Statement) and records of property tax payments.

Details: Contributions to an HSA may be deductible.

Documentation: Form 5498-SA and records of HSA contributions

Details: Contributions to retirement accounts like Traditional IRAs or 401(k)s may be deductible.

Documentation: Form 5498 for IRA contributions and records of 401(k) contributions.

Details: Certain job-related expenses may be deductible, especially for self-employed individuals.

Documentation: Keep detailed records of work-related expenses, including receipts and invoices.