You don't have to itemize to claim these deductions on your 2016 return
Can't itemize? You can still claim some expenses on your 2016 federal income tax return. Here's how you can benefit.
* IRA and HSA contributions
If you made a contribution to your traditional IRA for 2016, or if you plan to make a 2016 contribution by April 18, 2017, you may qualify to deduct up to the maximum contribution amount of $5,500 ($6,500 if you're age 50 or older). Income limitations apply in some cases, and you can't deduct contributions to Roth IRAs.
Health Savings Accounts (HSAs) are IRA-like accounts set up in conjunction with a high-deductible health insurance policy. The annual contributions you make to your HSA are deductible. Contributions are invested and grow on a tax-deferred basis, and you're allowed to withdraw money in the account tax-free to pay for your unreimbursed medical expenses. For 2016, you can deduct up to the contribution limit of $3,350 if you're filing single and $6,750 when you're married filing jointly. You may also be able to deduct an additional $1,000 if you were age 55 or older and made a catch-up contribution to your HSA.
* Student loan interest and tuition fees
Deduct up to $2,500 of interest on student loans for yourself, your spouse, and your dependents on your 2016 return. For 2016 returns, you can also deduct up to $4,000 of tuition and fees for qualified higher education courses. Income limitations apply, and you must coordinate these deductions with other education tax breaks.
* Self-employment deductions
If you're self-employed, you can generally deduct the cost of health insurance premiums, retirement plan contributions, and one-half of self-employment taxes.
* Other deductions
Alimony you pay, certain moving expenses, and early savings withdrawal penalties are also deductible on your 2016 return, even if you don't itemize. Teachers can deduct up to $250 for classroom supplies purchased out-of-pocket in 2016.
Contact our office for more information on these and other costs you may be able to deduct on your 2016 tax return.