Posted by It’s that time of year again – taxes are looming on the horizon. But don’t worry, we’re here to help! In this article, we’ll outline the five most common tax deductions you might be eligible for in New York, and give you some tips on how to maximize your deductions. So read on, and good luck with your taxes this year!
What are the top 5 tax deductions in New York?
Tax deductions in New York are plentiful, so it’s important to be aware of the top five deductions you should know about.
Itemized Deductions: The first and most common deduction in New York is itemized deductions. This means that you can subtract certain expenses from your income before calculating your taxes. This includes things like mortgage interest, charitable contributions, and state and local taxes. These deductions can be a big help when it comes to reducing your overall tax bill.
The second major deduction in New York is the mortgage interest deduction. This allows homeowners to reduce their taxable income by as much as $1,000 per year on qualifying mortgages. If you have more than one property, you can combine these deductions and save even more money.
Another popular deduction in New York is the casualty loss deduction. This allows people to deduct amounts they have paid out in damages due to natural disasters or other catastrophic events such as a fire or burglary. It’s important to keep track of this deduction since it can add up quickly if you’re affected by a large event over the course of several years.
The third major deduction in New York is for state and local taxes (S&Ls). This includes almost all taxes paid by individuals, including property taxes, sales taxes, income taxes, and excise taxes. By taking advantage of this deduction, taxpayers can reduce their taxable income by up to $10,000 per year.
The fourth major deduction in New York
How much can you Deduct?
In New York, you can deduct a number of expenses from your taxable income. Depending on your income and filing status, you may be able to claim various deductions. Here are the top tax deductions you should know in New York:
The state and local taxes deduction . You can deduct the total amount of state and local taxes paid during the year, subject to a certain limit. If you’re married filing separately, you can only deduct half of your spouse’s state and local taxes.
The mortgage interest deduction . You can deduct interest paid on a loan used to purchase or improve your home. The amount of interest that qualifies for the deduction depends on the amount of the loan and how long it has been outstanding.
The real estate commission deduction . If you are an agent representing a seller in connection with a real estate transaction, you can deduct commissions earned from that transaction. This includes commissions you earn as an owner-occupant, tenant-by-tenancy, or landlord. This deduction is capped at $200 per item sold ($600 if married filing jointly).
The miscellaneous itemized deductions . You can deduct various miscellaneous expenses, including medical expenses, casualty losses, rental property expenses, and charitable contributions. The amount of these deductions depends on their nature and how heavily they weigh against your overall income.
Which Tax Return to File?
Taxpayers in New York should file their tax return using the Form 1040, U.S. Individual Income Tax Return, unless they are claiming a tax deduction or credit that is only available on a Form 1040A, U.S. Individual Income Tax Return for Persons Who Are Self-Employed. Taxpayers who are filing a joint return with their spouse may choose to use either the Form 1040 or the Form 1040A, but must use the same type of tax return for all items listed on the return.
The following is a list of the top deductions taxpayers in New York can claim on their 2017 tax return:
1) The standard deduction: $6,350 for individuals and $12,700 for married couples filing jointly.
2) The personal exemption: $4,050 per individual or $8,000 per couple filing jointly. This exemption reduces your taxable income by $0 for every dollar of income above it.
3) The earned income credit: Up to $6,200 for individuals and up to $13,000 for married couples filing jointly who have qualifying children under age 18 at home. This credit reduces your taxable income by up to 50% of your earned income above these amounts.
4) The child tax credit: Up to $1,600 per child under age 17 who has been living with you full time for at least half of the year and is not claimed as a dependent on another person’s 2017
When to Claim a Tax Deduction?
When to Claim a Tax Deduction in New York
There are many important tax deductions that you may be able to claim in New York. Here are some of the most common:
- Home Mortgage Interest: If you have paid interest on a home mortgage in the past year, you may be able to deduct this amount from your taxable income.
- property taxes: If you have paid property taxes in the past year, you may be able to deduct these amounts from your taxable income.
- State and Local Income Taxes: If you have paid state or local income taxes in the past year, you may be able to deduct these amounts from your taxable income.
- Retirement Income: You may be able to claim retirement income as a deduction if it has been earned and is subject to tax withholding at source by your employer.
- Medical Expenses: You may be able to claim medical expenses as a deduction if they exceed 10% of your adjusted gross income (AGI).
- Child Care Expenses: You may be able to claim child care expenses as a deduction if they exceed 10% of your AGI.
More Tips
The top tax deductions you should know in New York include:
-State and local taxes: Depending on where you live, you may be able to deduct your state and local taxes from your federal taxable income. This can reduce your overall tax bill. To qualify, you must itemize your deductions on your federal Tax deductions in New York return.
-Tuition and fees: You may be able to deduct tuition and other educational expenses related to attending school. You must meet certain requirements, including being enrolled at an eligible educational institution and having incurred the expenses during the year.
-Rent: You may be able to deduct rent paid for housing used for personal purposes. The amount you can deduct depends on the type of housing and the percentage of your adjusted gross income (AGI) that is attributable to rent payments.
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