Mortgage interest deduction helps homeowners reduce the amount of taxes they owe.
These deductions are reported on Form 1098 and Schedule A or Schedule E, depending on the type of deduction.
The Tax Cuts and Jobs Act (TCJA) of 2017 reduced the maximum mortgage principal amount eligible for an interest deduction to $750,000 (from $1 million).
Some homeowners are exempt from the new restrictions under heritage regulations.
Many taxpayers are waiving the mortgage interest deduction in favor of a larger standard deduction.
The American Opportunity Tax Credit (AOTC) helps offset the cost of post-secondary education for students or their parents (if the student is a dependent).
Deductible taxes are expenses that a taxpayer or business can deduct from their adjusted gross income, which reduces their income, thereby reducing the total tax they must pay.
The Earned Income Tax Credit (EITC) is a refundable tax credit used to supplement the wages of low-income workers and help offset the impact of Social Security taxes.
As a result of the Tax Cuts and Jobs Act (TCJA), most taxpayers can now only carry forward net operating losses (NOLs) that occur in tax years after 2017 to a later year.
Form 4684 is the U.S. Internal Revenue Service (IRS) form for reporting profits or losses from accidents and thefts that occur as a result of a federally declared natural disaster that may be deductible for taxpayers who detail deductions.