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IRS Tax Deductions List

Scholasticus K Feb 6, 2019
There are quite a few tax deductions that any individual can avail of. The IRS tax deductions list is communicated to the taxpayers by the way of publications and topics that are included in the tax filing laws and regulations.
The Internal Revenue Service, commonly known as the IRS, is a Federal agency and is also a part of the Department of Treasury. This agency is responsible for collection of Federal Tax. In the United States, income tax is collected by filing of the income tax returns. This filing is done with the help of Form 1040.

Tax Deductions Explained

A tax deduction is basically provided in order to exempt people from double and unnecessary expenditures. At times, it so happens that people undertake some or the other activity or transaction in which irrecoverable expenditure is involved.
For example, a loan to buy a car or an insurance policy. The expense in the form of installments or premium is inevitable, and also necessary. In addition, medical expenditures and educational expenses, which are the basic necessities of a person's life, are also valid grounds for tax deductions.
Hence, it is essential not to tax these expenditures. Tax deductions are thus basically subtraction from the tax payer's annual taxable income.

IRS Tax Deduction List

Now that we are clear of what tax deductions are, let us move on to the list for the same. A huge tax deduction list by the IRS is available in varied formats on their website. The following list is a short summary of some of the prominent tax deductions that can be availed by individual taxpayers and the taxpayers who file their returns with their spouse.
The IRS has provided tax payers with two principal types of deductions, classified as standard deductions and itemized deductions. The taxpayer is mainly eligible to apply for any one kind of deduction, while filing income tax return. The standard return has uniformity in deductions, decided on the basis of factors such as marital status, age, and income.
The itemized deductions however, have to be claimed on the basis of expenditures incurred, and have to be authenticated by a proof. This deductions list can be used for itemized tax deductions.
  • Personal Assets Used for Business Purposes
  • Medical and Dental Expenses
  • Home Office Expenses
  • Investment Fees
  • Tax Preparation Fees
  • Legal Fees
  • Regulatory Fees
  • Deductible Taxes
  • Home Mortgage Points
  • Interest Expenses
  • Contributions
  • Casualty and Theft Losses
  • Business Use of Car
  • Travel Expenses
  • Business Entertainment Expenses
  • Advertising Expenses
  • Educational Expenses
  • Auto Registration
  • Charitable Donations
  • Dependent and Child Care
  • Licenses Procured
  • Research Expenses
  • Hybrid Car Tax Credit
  • Energy Tax Credit
  • Military Tax Deductions
  • Employee Tax Deductions
  • Employee Business Expenses Casualty
  • Safe Deposit Box Rentals
  • Disaster, and Theft Losses
  • Job Hunting Expenses
  • Business Insurance
  • Repairs and Maintenance
The topics between 501 to 515 specify the particulars of these deductions. The deductions for donations are used in order to reduce the tax liability of people who are involved in charity work. Similarly, exemptions for homeowners is provided in order to reduce the tax burden of people who are homeowners and are under the burden of mortgage.
This is a new deduction and has been introduced after the economic recession. Self-employed people avail the exemptions for small businesses that has been mentioned in the itemized classification of tax deductions.
The Form 1040 instructional is very useful, as it clearly states the qualifying conditions for every itemization. In addition to that, you can also claim some state taxes you will have already paid. You might also want to consider consulting a tax relief attorney in order to get some sound legal advise regarding your taxation and the related deductions.