Tax Preparation in South Orlando – Tax Deductions 101

Not all tax payers are familiar with the concept of tax deductions. Especially if they are the ones who will be working on their tax preparation in South Orlando for the first time.

A standard deduction is the amount of money IRS allows you to remove from your AGI (adjusted gross income), based on your filing status.

Standard deductions are described as the amount of money the IRS lets you deduct from the adjusted gross income. However, if you itemize when preparing your taxes with tax preparation in South Orlando, you do not get to claim a standard deduction.

Above-the-line deductions are subtractions made from your gross income. On your tax form prepared by tax preparation in South Orlando, you need to remove all above-the-line deductions and come to the AGI. It does not matter if you are itemizing your costs or not, as long as you are filling out the form you can claim these deductions.

The 10 itemized deductions that can be incorporated in your taxes are:

1. All job expenses that you were never reimbursed for by your employer. These are inclusive of uniforms that you purchase for work, union dues, transportation, and other job-related expenses.
2. Any student loan interest that your parents pay. If your parents have not as yet claimed you as a dependent, you are allowed to deduct some of the amount from the interest that was paid on a student loan.
3. If you own a business, you are free to deduct from the cost that you incurred on sales tax on business-related purchases, office equipment, and anything that was essential towards working on your business.
4. Check if an organization is qualified for a tax deductible donation. If you made a charitable contribution to that place, claim a Decurion.
5. Any loss of property due to theft or other natural disasters is treated as an applicable deduction.
6. You can write off the points that the bank appoints you when they give you a home loan.
7. You can deduct the amount of interest paid on your mortgage of the year.
8. If you win a big hand at poker, you can deduct the amount that you lost while you were playing that game. But that certain amount must not cross the limit of what you won. Lottery tickets are treated as gambling too.
9. You claim deductions on personal property tax as well, for example the vehicle that you own.
10. Car Tax credit is given out depending on the kind of hybrid car that you leased or purchased.

The above list may seem like a lot of deductions; you cannot claim a deduction on every cost that you incur. Please consult a professional tax preparation in South Orlando.

If you need more information about our South Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.