ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Reducing your Tax Bill with Deductions

Updated on May 12, 2011

It is tax time again to figure out how to either pay the IRS the least amount of money possible, or get the most money back from the IRS. Frequently it all boils down to deductions. What is a deduction? Deductions are things that reduce your overall tax bill.

Most people take the standard tax deduction, not wanting to mess with itemizing things. But if you can reduce your tax bill by itemizing then that is definitely the way to go. There are many things that you can itemize on your taxes.

If you have a mortgage then the chances are very good that you would benefit from itemizing, because typically people are paying so much in interest that the mortgage interest alone will be more than the standard deduction. If you bought a new home or refinanced an existing mortgage you can deduct any points paid on these loans. You can also deduct property taxes.

Do you give to charities? You should be keeping track of cash and items donated throughout the year. At the beginning of every year I start a file for anything that might be tax related. This way it is super easy for me to keep track of deductions. When I drop a bag of clothing off at Goodwill I save the receipt and can deduct what those items are worth. When I donate cans of pineapple for a church mission project I save the receipt, circling the items donated and making a note of who I donated them to. If you make cash donations make sure to get a receipt.

If you are an educator and incurred expenses for your classroom you can deduct these items. You can also sometimes deduct work related educational expenses. Speaking of work, you can usually deduct work related expenses as well. There are strict guidelines on these deductions so make sure you check with the IRS. It is always worth it to check to make sure you deduct the proper things.

Medical expenses are deductible as well. If you paid medical premiums out of pocket, after taxes were taken out, then you can deduct them. As with all deductions, you don’t get the full amount. For each deduction, the IRS has set guidelines as to what you can deduct. For instance you can deduct medical expenses if they exceeded 7.5% of your income. Of course each deduction has a different percentage, so pay attention when filling out the forms.

If you had casualties from a natural disaster, or even a theft, you can possibly deduct some of those expenses as well. If you incur expenses for your business some of these can be deducted as well. There are many things that you can deduct on your tax bill. Even if it requires some digging through things it will be worth it in the end when you pay less in taxes. Keep in mind though, that I am not an expert and you should always check with the IRS if you have any questions.




    0 of 8192 characters used
    Post Comment

    • ilovehubbing profile image


      9 years ago

      Great hub

    • Princessa profile image

      Wendy Iturrizaga 

      9 years ago from France

      Congratulations Jennifer, this is already a number 1 in Google :) and that is no wonder, excellent tips in here!

    • Dottie1 profile image


      9 years ago from MA, USA

      Thanks Jennifer. As usual a super helpful hub :)

    • doug 8787 profile image

      doug 8787 

      9 years ago from FOR WHAT IT'S WORTH !!

      Get information. I am sure this helps a lot of people. I would also like to add that the IRS favors small business owners. You can deduct a lot more of your expences when you have a home based business.

      Thanks Again



    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)