🎙️ H&R Block of North Platte and Ogallala Tax Tip (Week of Mar.21th)

Taking advantage of Tax Deductions

Taking advantage of all the tax deductions and credits that you're eligible for is one of the most important things you can do to reduce your tax bill. Some of the most common deductions and credits include the standard deduction, charitable contributions, and education expenses.

The standard deduction is a set amount that you can deduct from your taxable income without having to itemize your deductions. The amount of the standard deduction varies depending on your filing status, but it can be a significant amount of money. In some cases, it may be more beneficial to itemize your deductions, such as if you have a large amount of medical expenses or mortgage interest.

Charitable contributions are another popular tax deduction. If you donate money or goods to a qualified charity, you may be able to deduct the value of your donation from your taxable income. It's important to keep accurate records of your charitable contributions and to make sure that you're donating to a qualified charity in order to claim the deduction.

Finally, education expenses can also be tax deductible. If you're paying for higher education, such as college tuition or textbooks, you may be able to claim a tax credit or deduction. There are several different tax credits and deductions available for education expenses, so it's important to research which ones you may be eligible for and keep accurate records of your expenses. By taking advantage of these and other deductions and credits, you can lower your tax bill and keep more of your hard-earned money.