Deductible Expenses

Deductible expenses reduce your taxable income and can be claimed on your tax return to lower your overall tax liability. Both individuals and businesses can benefit from understanding which expenses are deductible.

Common Deductible Expenses for Individuals:

• Mortgage Interest: Interest paid on a home mortgage can often be deducted from your taxable income.
• Student Loan Interest: Up to $2,500 in student loan interest may be deductible.
• Medical Expenses: Medical and dental expenses exceeding 7.5% of your adjusted gross income can be deducted.
• Charitable Contributions: Donations to qualifying charities can be deducted.

Business Deductible Expenses:

• Business Meals: A portion of meals directly related to business activities can be deducted.
• Travel Costs: Business-related travel expenses, including airfare and lodging, are deductible.
• Home Office: If you work from home, you may be able to deduct a portion of your housing expenses as a home office deduction.

Important Notes:

• Keep detailed records and receipts for all deductible expenses to ensure eligibility.
• Not all expenses are automatically deductible; ensure they meet specific IRS guidelines.

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