Tax Breaks You Should Know About

With the recent tax reform, many people are unsure what to expect when it comes to tax breaks. Some are concerned that there are no tax breaks left, but that’s certainly not the case.

Sure, some tax breaks may not be available any longer, but there are still a great many tax breaks available. In fact, here are a few that you should know about.

SALT

Many people are not familiar with the State and Local Tax deduction, or SALT as it is commonly known.

However, this useful deduction allows people in some states to deduct their state income and property taxes.

While the deduction isn’t for quite as much as it once was, it is still around and still applicable in some states, including California, New York, and New Jersey among others.

Medical Expenses

Everyone knows that healthcare is expensive. What you might not know, however, is that if your healthcare costs are more than 7.5% of your adjusted gross income, you qualify for a sizeable deduction.   

If you’re unsure if you qualify or just need some help running the figures, speak with a tax professional in your area.

Mortgage Interest

Many people are under the impression that the mortgage interest deduction has been eliminated. Thankfully, that is not the case.

However, the deduction has been changed somewhat. You can’t deduct quite as much anymore, but you can still deduct the interest on a new home loan up to $750,000.

As you can see, deductions do still exist even if they’re a little bit different than they used to be.

To find out more about these deductions or to learn about other deductions for which you may qualify, contact a tax professional.