Tax season is around the corner, and you may be wondering how to lower your tax bill without going through the hassle of itemizing your deductions. Itemizing can be time-consuming and complicated, especially after the 2017 tax reform that increased the standard deduction and eliminated or limited many itemized deductions.
Fortunately, there are still some tax deductions that you can claim without itemizing, also known as above-the-line deductions. These are adjustments to your income that reduce the amount of taxable income you have to report on your tax return. They are available to anyone who qualifies, regardless of whether they take the standard deduction or not.
In this article, we will explore 11 tax deductions that you can claim without itemizing in 2024, and how they can benefit you. These deductions include:
Educator Expenses
If you are a teacher, counselor, or principal who spends your own money on classroom supplies, you can deduct up to $300 of your unreimbursed expenses. If you are married to another educator and file jointly, you can deduct up to $600.
Student Loan Interest
If you are paying interest on your student loans, or your child’s loans, you can deduct up to $2,500 of the interest paid. However, this deduction phases out if your modified adjusted gross income (MAGI) is higher than $85,000 for single filers, or $175,000 for married couples filing jointly.
Health Savings Account Contributions
If you have a high-deductible health plan (HDHP) and contribute to a health savings account (HSA), you can deduct your contributions up to the annual limit. For 2024, the limit is $3,700 for individuals and $7,400 for families. You can also deduct an additional $1,000 if you are 55 or older.
IRA Contributions
If you contribute to a traditional IRA, you can deduct your contributions up to the annual limit. For 2024, the limit is $6,500 for individuals and $13,000 for married couples filing jointly. You can also deduct an additional $1,000 if you are 50 or older. However, this deduction may be reduced or eliminated if you or your spouse are covered by a retirement plan at work and your income exceeds certain thresholds.
Self-Employment Expenses
If you are self-employed, you can deduct various expenses related to your business, such as:
- 50% of your self-employment tax
- Health insurance premiums for yourself and your family
- Retirement plan contributions
- Business use of your home and car
- Travel, meals, and entertainment expenses
- Advertising, supplies, and other business expenses
Alimony Payments
If you pay alimony to a former spouse under a divorce or separation agreement that was executed before 2019, you can deduct the amount of alimony you paid. However, you cannot deduct alimony payments for agreements that were executed or modified after 2018, as the tax rules have changed.
Moving Expenses
If you moved for work-related reasons in 2024, you may be able to deduct your moving expenses, such as transportation, lodging, and storage fees. However, this deduction is only available to active-duty members of the armed forces who moved due to a permanent change of station.
Educator Expenses
If you are a teacher, counselor, or principal who spends your own money on classroom supplies, you can deduct up to $300 of your unreimbursed expenses. If you are married to another educator and file jointly, you can deduct up to $600.
Tuition and Fees
If you paid tuition and fees for yourself, your spouse, or your dependent to attend an eligible educational institution, you can deduct up to $4,000 of the qualified expenses. However, this deduction phases out if your MAGI is higher than $70,000 for single filers, or $140,000 for married couples filing jointly.
Jury Duty Pay
If you served as a juror and received pay from the court, you may have to give some or all of it to your employer if they continued to pay your regular wages while you were on jury duty. If that’s the case, you can deduct the amount of jury pay you gave to your employer.
Disaster Losses
If you suffered a loss from a federally declared disaster in 2024, you may be able to deduct the amount of your loss that was not covered by insurance or other reimbursements. However, you have to subtract $100 from each casualty or theft event, and then subtract 10% of your AGI from the total of your losses.
Conclusion
These are some of the tax deductions that you can claim without itemizing in 2024. By taking advantage of these deductions, you can lower your taxable income and save money on your taxes. However, you should always consult a tax professional before claiming any deductions, as the tax rules may change or vary depending on your specific situation.
Source:
Tax Breaks You Can Claim Without Itemizing | SmartAsset. https://smartasset.com/taxes/tax-breaks-you-can-claim-without-itemizing
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