• Latest
What you need to know about tax deductions

What you need to know about tax deductions

January 7, 2013

Dirty Harry (1971)

January 21, 2021
F&W’s 2021 Conservation Camp Registration is Open

F&W’s 2021 Conservation Camp Registration is Open

January 19, 2021
Ice Fishing FUNdamentals How to Enjoy Yourself and Stay Safe on the Ice This Winter

Ice Fishing FUNdamentals How to Enjoy Yourself and Stay Safe on the Ice This Winter

January 19, 2021
This Old House

Mouse in the House

January 19, 2021

Buffalo Plaid Fundraiser to Support Local Nonprofits

January 19, 2021

Free Tax Filing at Capstone Community Action for Tax Year 2020

January 19, 2021

Leahy-Led Bipartisan Bill Promoting Affordable Health Insurance Is Signed Into Law

January 19, 2021

Vermont State Labor Council, AFL-CIO Hires First Female Executive Director, Signaling New Direction for VT Labor Movement

January 12, 2021

Vermont Mutual Distributes $1,000,000 to COVID-19 Relief Efforts

January 12, 2021
Hunters Take 6,136 Turkeys in Vermont in 2020

Hunters Take 6,136 Turkeys in Vermont in 2020

January 12, 2021
Additional Ounce, Priority Mail and Postcard Stamps Available Jan. 24

Additional Ounce, Priority Mail and Postcard Stamps Available Jan. 24

January 12, 2021
One Credit Union Donates $12K to Make-A-Wish

One Credit Union Donates $12K to Make-A-Wish

January 12, 2021
  • Home
  • Disclaimer
  • Privacy
  • Sitemap
Sunday, January 24, 2021
The World Online
  • Home
  • News & Features
    • Local News
    • Letters & opinions
    • George Shuman
    • Max’s View
    • Local Sports & Outdoors
    • Births
    • Weddings & Engagements
  • Calendar
    • Art Exhibits
    • Calendar of Events
    • Ongoing Events
  • Obituaries
  • Submit
    • Submit Calendar Listing
    • Submit An Article To The World
    • Submit Letter To The Editor
    • Submit Sports News/Photo
    • Submit Birth Announcement
    • Submit Engagement Announcement
    • Submit Wedding Announcement
  • Advertising
    • World Rates and Ad Sizes
    • World Distribution Map
    • World Deadlines
    • Audit and Reader Surveys
    • Advertising Inquiry
  • Classifieds
    • Place Classified Ads
    • View Current Classifieds
  • About Us
  • Contact Us
No Result
View All Result
  • Home
  • News & Features
    • Local News
    • Letters & opinions
    • George Shuman
    • Max’s View
    • Local Sports & Outdoors
    • Births
    • Weddings & Engagements
  • Calendar
    • Art Exhibits
    • Calendar of Events
    • Ongoing Events
  • Obituaries
  • Submit
    • Submit Calendar Listing
    • Submit An Article To The World
    • Submit Letter To The Editor
    • Submit Sports News/Photo
    • Submit Birth Announcement
    • Submit Engagement Announcement
    • Submit Wedding Announcement
  • Advertising
    • World Rates and Ad Sizes
    • World Distribution Map
    • World Deadlines
    • Audit and Reader Surveys
    • Advertising Inquiry
  • Classifieds
    • Place Classified Ads
    • View Current Classifieds
  • About Us
  • Contact Us
No Result
View All Result
The World Online
No Result
View All Result

What you need to know about tax deductions

vt-world by vt-world
January 7, 2013
in Finance
0
What you need to know about tax deductions

You probably know tax deductions are an important part of your income tax return and that you want as many as possible. But do you understand how deductions actually save you money or how to determine which ones you can claim on your tax return?

“Simply put, deductions lower the amount of your taxable income,” explains Jessi Dolmage, spokesperson for TaxACT, makers of popular tax-preparation software. “The more deductions you have, the less tax you pay.”

Knowing which deductions you qualify for and whether you should itemize is easy with do-it-yourself tax preparation products. Dolmage says: “The program eliminates the guess work. Answer simple questions about deductions and it will tell if you’re better off itemizing or taking the standard deduction. It also checks for errors and offers one-on-one tax help every step of the way.”

You have the choice of claiming the standard deduction or itemizing deductions on your tax return, but you should choose whichever amount is higher.

Nearly two out of three taxpayers claim the standard deduction. Amounts are adjusted for inflation each year, vary by filing status and are higher for those 65 and older or who are legally blind. For 2012 federal tax returns due April 15, 2013, standard deduction amounts are:

* $ 5,950 for single or married filing separately

* $ 11,900 for married filing jointly and qualifying widows(ers)

* $ 8,700 for head of household

If you itemize, your deductions are listed separately on your tax return. Itemized deductions are reported on Schedule A and can only be filed with long Form 1040. On the other hand, taxpayers claiming the standard deduction can file Form 1040, 1040A or 1040EZ.

Itemized deductions may include mortgage interest, state and local taxes, charitable gifts, unreimbursed employee expenses, uninsured casualty or theft losses, and miscellaneous deductions. However, your expenses must meet certain requirements to qualify as itemized deductions. For instance, certain miscellaneous deductions must exceed 2 percent of your adjusted gross income, and unreimbursed medical and dental costs must exceed 7.5 percent of your adjusted gross income.

If your tax return filing status is married filing separately, both spouses must claim the same deduction type. If one spouse itemizes deductions, the other must also itemize, and vice versa.

All taxpayers are eligible for certain deductions, regardless of whether they itemize. Examples include traditional IRA contributions, student loan interest, alimony payments, moving expenses and a portion of your self-employment tax (if applicable). Deductions like these are often described as “above-the-line” because they are deducted from gross income. Itemized and standard deductions are subtracted from adjusted gross income.

Learn more about deductions in IRS Publication 501 at www.irs.gov. For step-by-step guidance through deductions, tax forms and  free tax help, visit www.taxact.com. TaxACT Free Federal Edition has everything you need to maximize your deductions and file your federal tax return free.

Tags: aboutdeductionsKnowneed
Previous Post

Use the new year as an opportunity for a fresh start

Next Post

Seventies style is stayin' alive: tips to keep up with the trend

Next Post
Seventies style is stayin’ alive: tips to keep up with the trend

Seventies style is stayin' alive: tips to keep up with the trend

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This Week’s Ads

  • Home
  • About Us
  • Disclaimer
  • Privacy
  • Sitemap
The World
403 US Route 302
Barre, VT 05641
Phone: (802) 479-2582

Copyright © 2019 The World Online. All Rights Reserved. Powered by CoolerAds.

No Result
View All Result
  • Art Exhibits
  • Audit and Reader Surveys
  • Births
  • Calendar
  • Contact Us
  • Daily Horoscope
  • Fall Dining Guide
  • Food & Recipe
  • Home
  • Obituaries
  • Ongoing Events
  • Pay Your Bill Here
  • Senior Living Edition
  • Showtimes
  • Submit Birth Announcement
  • Submit Calendar Listing
  • Submit Engagement Announcement
  • Submit Listing to our Local Directory
  • Submit Sports News/Photo
  • Submit Wedding Announcement
  • Testimonials
  • The World Coupons
  • Weather Forecast
  • World Deadlines
  • World Distribution Map
  • World Rate Card
  • World Rates and Ad Sizes
  • Disclaimer
  • Privacy
  • Sitemap
  • About Us
  • Vermont Lottery
  • Advertising Information
  • The World Staff
  • Advertising Inquiry
  • Submit Letter To The Editor
  • Local Directory
  • Poll Results
  • Local Deals
  • Classifieds
  • Submit An Article To The World
  • Events
  • The World – This Week’s Online Digital Edition
  • The World Auto & Sports

Copyright © 2019 The World Online. All Rights Reserved. Powered by CoolerAds.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In