Medical expenses fall among the list of IRS deductions. Before filing 2013 taxes, first learn if you qualify.
If you are generally healthy then you probably won’t be able to take a medical tax deduction. However, if you racked up countless medical and dental bills over the tax year, you might qualify for the medical expenses deduction.
Whether your deducting medical expenses or not, you can file your taxes on RapidTax. To help your filing process of claiming medical expenses on your 2013 tax return, here’s ten important facts;
1. You must Itemize: Don’t plan on deducting medical expenses if you’re taking the standard deduction. You can only claim a deduction for medical expenses if itemizing your deductions.
2. The AGI threshold has increased to 10%: In the past, if your list of medical expenses totaled a number exceeding 7.5% of your adjusted gross income (AGI), then you could deduct them. Starting on 2013 tax returns, that percentage has increased by 2.5%. Meaning, your total medical expenses must equal at least 10% of your AGI.
Continue reading “10 Facts To Know Before Taking the Medical Expenses Deduction in 2014”
If you made a charitable donation over the past year you may be wondering what you can write off on your taxes.
You may want to make a donation for the sake of the holiday season or to use it as a tax deduction (or both). Keep in mind, only if you are itemizing your deductions while filing your taxes, you can write off charitable donations to those falling within “Qualified Organizations” list.
Charitable Contribution Deduction Facts:
- You may deduct charitable contributions of money or property that you made to a qualified organization only if you itemize your deductions on Form 1040 .
- Generally charitable deduction limits are up to 50% of your adjusted gross income
- Contributions must be paid in cash or other forms of property before the end of the tax year in order to be deductible when itemizing your tax deductions
- For items of property (items other than cash) donated, the fair market value of the item will be deducted on your tax return.
- When making donations, it’s best to write checks (that way you can easily track your offerings)
- The IRS Publication 526 explains Charitable Contributions and tax deductible donations.
What Organizations are considered “Qualified Organizations” to donate to?
In order to consider a charitable contribution a tax deduction when itemizing your deductions it must be made to certain types of organizations. The list of qualified organizations is as follows: Continue reading “What Types of Donations are Tax Deductible?”