Be proactive about tax season by identifying what deductions and credits you're eligible for.
Expected Time: 10 minutes
What You’ll Need:
💻 Computer with access to your company W2 platform
Why This is Important
You don’t want to miss out on a deduction or credit that could reduce what you owe in taxes!
You want to be aware of all of your deductions and credits, so that you make sure to include all of them in your filing, but also so that you can decide between the standard and itemized deductions.
The information below is meant for educational purposes only, and cannot be considered investment advice. Consult with tax professional for questions on your specific situation.
The IRS gives everyone a standard deduction, which is a dollar amount that can be deducted from your taxable income to reduce your tax bill.
💡This amount for 2022 is $12,950 for single filers, $25,900 for joint filers or $19,400 for heads of household.
💡Taxpayers who are over the age 65 or blind can add an additional $1,400 to their standard deduction.
You can choose to accept the standard deduction or do an itemized deduction if you think that your situation will result in a lower taxable income that way.
For example, since the standard deduction excludes mortgage interest, which can be deducted if you choose to itemize deductions, a person with significant mortgage interest may benefit from using the itemized deduction method. Online tax platforms will help you make this decision or a tax professional.
In addition to deductions, you can also qualify for tax credits that reduce the amount of taxes you owe.
✅ Review the list below of common deductions and credits to see what you may be eligible for: