Tax filing is a requirement for all American citizens who have a source of income. It can be a serious headache for those who are not knowledgeable about what is deductible and what can not be deducted on their federal income tax return. There are numerous deductible items you can take on your tax return to reduce your tax liability. These deductible items are usually filed on schedule A form 1040.
Before you file your 2011 tax return find out if you may reduce your tax liability by taking qualified Federal Income Tax Deductions. It will be a good practice if you keep good records and you understand what deductions to declare and save money during tax time.
Real estate taxes you paid during the year are deductible on your federal income tax return on schedule A form 1040 when you itemize. Also deductible are state and local income taxes, general sales taxes and other property taxes, such as automobile excise tax. You can also deduct interest you paid on your home mortgage and home equity loan or line of credit. Points you paid that are in connection with your mortgage loan are also federal tax deductions. You may quality for student loan deductions if you meet the required income limitation. Health care is also a deductible item. You may qualify to deduct your out of pocket health care expenses if they add up to 7.5 percent or more of your adjusted gross income. You may deduct expenses you made for medical and dental care for yourself and your dependents.
Also deductible are health insurance premiums, hospital expenses and co-pays. Take note that you may deduct health related expenses that are not paid by your medical insurance company. Business expenses are deductible on your federal tax return. As an employee, the money you spent on uniform, union dues, and trade magazines are deductible on schedule A form 1040. Moving expenses are deductible if you relocate to take another job in your industry. The cost of business travel, lodging and meals may be deducted within certain guidelines. Donations to charity are deductible on schedule A form 1040. When you make contributions, keep records and receipts to back up with your contributions. Deductions are limited to the fair market value of your donation. You may take mileage deduction for charity related travel. You are entitled to tax deductions if you are a victim of natural disaster or incurred losses through theft or vandalism. Losses reimbursed to you by your insurance company are not deductible on your tax return.
In order to save money during tax time and reduce your tax liability visit Federal Income Tax Deductions 2011 and take note of the deductible items that will be beneficial to you.
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