Tax Deductions for Non-Itemizers

With the increase in the Standard Deduction created by the Tax Cuts and Jobs Act, many more taxpayers are choosing not to itemize.

Even so, there are still opportunities to reduce your taxable income. Among them:

• IRA contributions of up to $6,000, or $7,000 if age 50 or over
• Student loan interest up to $2,500
• Educator expense deduction of $250
• Health savings accounts (if you qualify)
• Self-employed health insurance premiums
• Alimony paid (for agreements dated before
  2019 only)
• 50% of self-employment tax
• Numerous education incentives like: Savings bond interest, Coverdell accounts, American Opportunity Credit and Lifetime Learning Credit
• Plus numerous credits including: Earned income credit, Dependent Care, Child Tax Credit, Retirement Savings and Elderly Credit

Income limitations often apply to these tax reduction opportunities, but for those who qualify, the savings can be significant.

Don’t jump to the conclusion that tax breaks are for someone else. That someone else might just be you, the Standard Deduction taxpayer.

This article was published in Alloy Silverstein’s Spring 2020 Newsletter. Click here for more content or to subscribe.