PERSONAL WRITE-OFFS

2023 DEDUCTIONS

  • • Son

    • Daughter

    • Stepchild

    • Foster Child

    • Grandchild

    • Niece

    • Nephew

    • Parent/In-Laws

    • Uncle

    • Aunt

    • Grandparents

    • Sister

    • Half Sister

    • Step Sister

    • Brother

    • Half Brother

    • Step Brother

  • • Traditional IRA - Limit $6,500 under age 50 and $7,500 age 50 or older

    • HSA (Health Savings Account) - Limit $3,850 for self-only coverage and $7,750 for family coverage.

    • MSA (Medical Savings Account) - Limit $3,050

    • SEP-IRA (Self-Employed) - Limit 25% of self-employment net income or $66,000 (whichever is lesser).

    Note: 401(k) plans should already be reflected on your Form W-2 through your retirement plan offered by your employer. Taxable income is automatically reduced.

    Note: Contributions to a Roth IRA are not tax-deductible on your federal income tax return. The money you contribute to a Roth IRA is made with after-tax dollars, meaning you've already paid taxes on that income. You cannot deduct Roth IRA contributions from your taxable income.

  • • Cash Donations

    • Casualty Loss and Thefts

    • Federally Declared Disasters

    • Gambling Losses (only to the extent of winnings)

    • Medical Expenses (must exceed 7.5% of your adjusted gross income)

    • Mileage for Volunteer Work

    • Mortgage Interest Paid (Form 1098)

    • Mortgage Points

    • Noncash Donations

    • Out-Of-Pocket Volunteering Expenses

    • Personal Property Tax

    • Real Estate Property Tax

    • Sales Tax

    • Tithings

  • You can deduct a maximum loss of $3,000 per year from stocks, cryptocurrency, or other realized investments. If you had more losses, you can carry them over to the next tax years.

    Found on Form 1099-B from your broker.

  • Some states, such as California, allows you to itemize specific deductions such as work expenses, fees, and more. Ask your accountant for more detail.

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2023 TAX CREDITS

  • • College Tuition (Form 1098)

    • Student Loan Interests (Form 1098-E)

    • Teacher/Educator Expenses - Deduct up to $300. $600 if married filing jointly and both spouses are eligible educators, but not more than $300 each.

    • Electronics

    • Course Materials

    • Educational Software

    • Required Machine and Equipment

    • Books

    • E-Books

  • • Payments to caregivers: Amounts paid to individuals (other than a spouse, the parent of the child, or anyone else you claim as a dependent) for providing care.

    • Cost of day care or child care centers: Payments to a day care or child care center that complies with state and local regulations.

    • Cost of day camps: Even camps focused on a particular activity, like a soccer camp or computer camp, can qualify. However, overnight camp costs do not qualify.

    • Pre-kindergarten: The cost of preschool or nursery school is eligible, but kindergarten and higher grades are not.

    • Before and after school care: If it's for a child under 13.

    • Household services: Services related to the care of the qualifying person, such as a housekeeper or maid.

  • • Qualified Solar Electric Property

    • Qualified Solar Water Heating Property

    • Qualified Small Wind Energy Property Costs

    • Qualified Geothermal Heat Pump Costs

    • Qualified Biomass Fuel Property Costs

    • Qualified Fuel Cell Property

    • Alternative Fuel Vehicle Refueling Property (Charging EV)

    • Kilowatt Capacity of the Fuel Cell Property

    • Insulation Material or Systems to Reduce Heat Loss or Gain

    • Version 6.0 Energy Star Program Exterior Windows or Skylights

    • Version 6.0 Energy Star Program Exterior Doors

    • Energy Star Program Metal or Asphalt Roof

    • Energy Efficient Building Property ($300 limit)

    • Furnace or Hot Water Boiler using Natural Gas, Propane, or Oil ($150 limit)

    • Advanced Main Circulating Fan ($50 limit)

  • Federal tax credit of up to $7,500

    All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500.

    View the eligible vehicles here:

    https://fueleconomy.gov/feg/tax2023.shtml

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