What are the deductions and credits that individuals can claim on their tax return?

Common Deductions and Credits Individuals Can Claim on Their Tax Return

When filing your tax return, individuals may be eligible for various deductions and tax credits to reduce their taxable income and overall tax liability. Some common deductions and credits that individuals can claim include:

Deductions:

• 1. Standard Deduction: A set amount that can be subtracted from your taxable income based on your filing status.
• 2. Itemized Deductions: Expenses such as mortgage interest, medical expenses, state and local taxes, and charitable contributions that can be deducted if they exceed the standard deduction.
• 3. Educator Expenses: Teachers can deduct up to $250 of unreimbursed expenses for supplies and materials used in the classroom.

Tax Credits:

• 1. Earned Income Tax Credit (EITC): A refundable credit for low to moderate-income individuals and families.
• 2. Child Tax Credit: A credit for qualifying dependents under the age of 17.
• 3. Lifetime Learning Credit: A credit for qualified education expenses paid for yourself, your spouse, or your dependents.

It is important to carefully review the eligibility criteria and documentation requirements for each deduction and credit to ensure accurate and compliant tax filing. Consult with a tax professional or utilize tax software to maximize your tax savings.