What are the deductions and credits you may be eligible for on your income tax return?

When filing your income tax return, there are several deductions and credits available to help you reduce your taxable income and potentially lower your overall tax liability. Some common deductions and credits you may be eligible for include the following:

Deductions:

• Standard Deduction: This is a set amount that you can deduct from your taxable income, depending on your filing status.
• Itemized Deductions: These include expenses such as mortgage interest, medical expenses, charitable contributions, and state and local taxes.
• Student Loan Interest Deduction: You may be able to deduct up to $2,500 in interest paid on qualified student loans.
• Self-Employed Business Expenses: If you are self-employed, you can deduct expenses related to your business.

Credits:

• Child Tax Credit: This credit is available for each qualifying child under the age of 17.
• Earned Income Tax Credit: This credit is for low to moderate-income individuals and families.
• Education Credits: There are several education credits available, such as the American Opportunity Credit and the Lifetime Learning Credit.
• Retirement Savings Contributions Credit: If you contribute to a retirement account, you may be eligible for this credit.

It's important to consult with a tax professional or use tax software to ensure you are maximizing your deductions and credits and taking full advantage of the tax benefits available to you.