5 Common Tax Deduction

Tax season is in full swing for 2013.  If you’re working on your taxes via paper or online (check out our list of 10 TurboTax discounts) you should be aware of these common tax deductions.

Home Mortgage Interest

Generally you can deduct the mortgage interest you’ve paid on your home mortgage.  You’ll receive a 1098 from your mortgage issuer if you paid more than $6,000 in interest in the year.  Be sure to check with a tax professional as your situation may not allow for a mortgage interest deduction.  Income limits may apply to you.

Income Taxes Paid

You may be able to deduct a portion of your local and state taxes paid in the year. You can’t deduct state and local taxes paid on income that is exempt from federal income tax, however.

Real Estate Taxes Paid

Your property tax paid may be deductible on your federal income taxes for the year.

Charitable Deductions

If you give money to a qualified charitable organization you may be able to deduct it from your income earned for the year.  The amount you deduct may be limited based on your income.

Student Loan Interest

You can deduct student loan interest from your taxes even if you don’t itemize.  Make sure you get the form 1098-E from your student loan provider to show proof of interest paid.

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