What Can You Deduct From Your Taxes?

Tax Deductible Business Expenses

A variety of expenses related to businesses and performing a job or trade are tax deductible. Money spent on business travel, such as flying and taking public transportation to meet clients or attend business meetings, are deductible. The costs associated with operating a home office, such as the cost of rented office space and utilities, are also tax deductible. If you use a vehicle for business, the cost of using the vehicle for work purposes is deductible.

Homeowners are granted two important tax deductions that can significantly reduce the cost of homeownership. The interest paid toward a mortgage on a primary residence is tax deductible. Mortgage interest can easily amount to thousands of dollars a year, making mortgage interest a sizable deduction. Money paid toward real estate taxes is also tax deductible.

Gifts made to charitable organizations are tax deductible. Gifts given to religious organization, such as churches and synagogues, qualify for tax deductions, as do donations to many nonprofits, such as the Salvation Army or the World Wildlife Fund. If you give to charity during the year, keep a record of all transactions so that you can claim them when you file your tax return. Organizations should be able to tell you whether donations made are tax deductible.

Money spent toward health care is tax deductible if your spending exceeds certain minimum levels. According to TurboTax, health spending in excess of 7.5 percent of your adjusted gross income is tax deductible. In other words, if you make $100,000 a year, money you spend on health care in excess of $7,500 is tax deductible.

Many miscellaneous tax deductions are available to taxpayers. The IRS states that the following expenses are tax deductible: gambling losses up to the amount of gambling winnings, union dues, tools necessary for your work or trade, uniforms necessary for your work, work-related education, tax advice fees, and legal fees related to doing or keeping a job.