(WXYZ) — Monday, April 18 is “Tax Day.” It’s in a little over four weeks.
But you may not know some deductions.
Cathy Lorenz, partner and CPA at Cohen & Company in St. Clair Shores, explains that there are two types of deductions: itemized deductions and top deductions.
Deductions above the line are for anyone who qualifies.
Even if you don’t have enough itemized deductions and prefer to take the standard deduction, you can still take things like educator expenses,” Cathy said.
An example of an itemized expense is the educator’s expenses.
“Teachers can take up to $250 for school supplies,” Cathy said.
Also, if you’re self-employed, Cathy says you can deduct your self-employed health insurance, which includes health insurance.
“So if you’re retired, on Social Security, but working on the side, you can take your Medicare expenses and other health insurance expenses above the line,” she said.
Interest on student loans you paid last year can also be claimed as an adjustment to income, so it is not necessary to itemize it.
If you suffered losses from the June floods last year, the federal government has declared it a disaster so victims can claim damage loss deductions without detailing.
“People in Michigan who had over $500 in unreimbursed losses for property and things like that that were in their basement, they can take advantage of that deduction,” Cathy said.
Lorenz says itemized deductions that people may not be aware of include medical expenses, home loan interest and gambling losses.
Those who claim gambling losses up to the limit of their winnings on their federal tax return can now make this deduction on their state form.
This deduction is also valid for lottery tickets.
Whenever you buy one, just keep it in a bag for your tax records.
If you are unsure whether to itemize, consult a reputable tax preparer.