April 17th is right around the corner and that is when we submit our tax filings to our state and federal government. Tax deductions can help you cut down your 2017 tax bill.
Here are 11 deductions that you might have overlooked courtesy of CNN Money:
Traditional IRA contributions - you have till April 17th to make a tax-deductible contribution to your traditional IRA for 2017. You can contribute $5,500, or $6,500 if you’re over 50.
Head of Household filing status - If your spouse has not been in the home for the last six months of 2017, you can qualify for head of household status.
Moving expenses - you can deduct any moving related expenses not reimbursed by your employer or if you are self-employed.
Mileage - If you drive for work you may deduct a portion of the miles you log, as long as you meet certain criteria and itemize your deductions.
Gambling losses - If you enjoy wagering, you’re allowed to deduct your losses but only up to the amount of your winnings for the year, and only if you itemize.
Personal property taxes - If you itemize your deductions and live in a state that imposes an annual personal property tax based on the value of your car, you may deduct that tax on your federal return.
Medical expenses - You can take this deduction if you itemize, and the new tax law made it a little easier to take, temporarily. The general rule is that you may deduct any unreimbursed medical and dental expenses that exceed 10% of your adjusted gross income. But that threshold is lowered to 7.5% of AGI for tax years 2017 and 2018 only.
Reinvested dividends - If you sold a long-held stock or mutual fund in 2017, you’ll owe tax on any capital gain, which is the difference between your purchase price (aka your “cost basis”) and the price you sold the investment for. But if you’ve been reinvesting your dividends all along, that money gets added to your cost basis. And that will reduce the overall tax you owe on your capital gains.
Private mortgage insurance premiums - If you itemize deductions, you’re allowed to deduct the PMI payments you made last year on loans taken out after 2006. You only have to pay PMI if you put down less than 20% on the home you bought. You can’t take the deduction if your AGI is over $110,000. This break had expired but was given a one-year extension under a recent spending deal passed by Congress.
Home equity interest - If you’ve taken out a home equity loan or line of credit, you may still deduct the interest you pay on it for 2017. But per guidance from the IRS, from 2018 through 2025, you will only be able to deduct the interest if you use the money for home improvement.