Did you know that there are deductions you can claim without itemizing your return? It’s true. Not everyone is able to itemize however, you can still claim some expenses on your 2016 tax return. Below is a list that allows you to claim a deduction without itemizing your return.
* Self-employment. If you're self-employed, you can generally deduct the cost of health insurance premiums, retirement plan contributions, and one-half of self-employment taxes.
* Tuition fees and student loan interest. You can deduct up to $2,500 of interest on student loans for yourself, your spouse, and your dependents on your 2016 return. You can also deduct up to $4,000 of tuition and fees for qualified higher education courses. However, income limitations apply, and you must coordinate these deductions with other education tax breaks.
* IRA contributions. If you made a contribution to your traditional IRA for 2016, or if you plan to make a 2016 contribution by April 18, 2017, you may qualify to deduct up to the maximum contribution amount of $5,500 ($6,500 if you're age 50 or older). Income limitations apply in some cases, and you can't deduct contributions to Roth IRAs.
* HSA contributions. Health Savings Accounts (HSAs) are IRA-like accounts set up in conjunction with a high-deductible health insurance policy. The annual contributions you make to your HSA are deductible. Contributions are invested and grow on a tax-deferred basis that allow you to withdraw money in the account tax-free to pay for your unreimbursed medical expenses.
For 2016, you can deduct up to the contribution limit of $3,350 if you're filing single and $6,750 when you're married filing jointly. You may also be able to deduct an additional $1,000 if you were age 55 or older and made a catch-up contribution to your HSA.
Other deductions that you don’t need to itemize on your 2016 return include:
** Alimony paid by you.
** Some moving expenses.
** Early savings withdrawal penalties.
** Teachers can deduct up to $250 for classroom supplies purchased out-of-pocket in 2016.
For more tips contact our office at 866-497-9761 to schedule an appointment with our advisors. At Summit CPA we offer multiple resources that will help get your business on the right track.