Tax Tools

Tax deductions are expenses that reduce the amount of income subject to tax. There are thousands tax deductions in tax code and regulations. The most common deductions include:

Taxpayers are categorized into a tax bucket based on their filing status.

A standard deduction is the dollar amount that can be deducted from one’s income. Your standard deduction is determined based on your filing status. These amounts are governed by the IRS.

The standard deduction for the 2019 tax year

StatusDeductionBorn before January 2, 1954Blind
Single$12,200$1,650$1,650
Married Filing Jointly$24,400$1,300 per spouse$1,300 per spouse
Married Filing Separately$12,200$1,300$1,300
Head Of Household$18,350$1,650$1,650
Qualified Widow(er) With Dependent Child$24,200$1,300$1,300

 

Itemized deductions allow you to deduct your expenses such as mortgage, interest, donations, medical expenses, and so forth. When the summation of your itemized deduction exceeds the value of your standard deduction, your total deduction amount begins to increase. Additional deductions can reduce the amount of income being taxed and increase your tax refund or diminish any tax liability.

Take advantage of our accurate tax preparation services at ATC. With superior understanding of the tax codes as well as state and federal deductions, our team of tax service professionals will assess your personal tax situation and help you find and claim all the credits and hidden tax deductions you qualify for and one’s that benefit you mostfrom one’s income. Your standard deduction is determined based on your filing status. These amounts are governed by the IRS.

Medical and Dental Expenses

If you itemize deductions and you’re under 65, you may deduct the amounts you paid for medical and dental expenses that exceeds 10% of your adjusted gross income (AGI). If either you or your spouse is 65 or older, you can deduct the amount that exceeds 7.5% of your AGI.The deduction is allowed for expenses paid for the prevention and alleviation of a physical or mental defect or illness. Medical expenses include expenses related to diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any function or structure of the body.

Deduction Guidelines

  • Expenses must be for you, your spouse or your dependent, or for anyone who would qualify as your dependent except for having a gross income of more than $4,050.
  • Expenses must be paid during the current tax year, regardless of when incurred.
  • Expenses must not be compensated by insurance.
  • Expenses must not be paid out of a tax-free medical savings or health savings account.
  • You must subtract from your deduction total any reimbursement of medical expenses, whether they were paid to you or directly to the doctor or hospital.

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