Turbotax Loan Deduction Point: Understanding the Changes and Opportunities in 2023

The Tax Cuts and Jobs Act (TCJA) of 2017 brought significant changes to the way Americans file their taxes. One of the most notable changes is the increase in the standard deduction, which has made it more challenging for individuals to itemize deductions. However, there are still opportunities to deduct certain expenses on your federal tax return.

One area where taxpayers can potentially claim a deduction is property taxes. These taxes are typically levied by state and local governments and can be deducted from your federal tax return. To qualify, the tax must be based on the value of the property, such as real estate or personal property like cars or boats.

In addition to property taxes, there are other charges on your property tax bill that may be deductible. These include:

* Assessments for improvements that increase the value of your property

* Fines charged by local governments for non-compliance with ordinances

* Service fees for services such as water or trash collection

It's essential to note that not all charges on your property tax bill are deductible. To write off sales taxes, you can track your actual sales taxes paid throughout the year, use the sales tax tables included with the IRS instructions for Schedule A, or utilize the IRS sales tax deduction calculator.

Another area where taxpayers may be able to claim a deduction is state and local income taxes. These taxes can be deducted from your federal tax return if they are not already being claimed as part of your standard deduction. You can deduct state or local income taxes paid at tax time, withheld from your paycheck, or made through estimated tax payments.

In conclusion, while the changes brought about by the TCJA may have reduced the number of taxpayers who itemize deductions, there are still opportunities to claim deductions on your federal tax return. By understanding the changes and taking advantage of the deductions available, you can maximize your refund and minimize your tax liability.

Turbotax loan deduction point