What deductions can I take?

In Arizona, taxpayers can deduct various expenses when filing their personal taxes. One of the most commonly used deductions is the standard deduction, which is based on the taxpayer’s filing status. The standard deduction for married couples filing jointly is $24,400 in 2020. State and local taxes can also be deducted when filing taxes. This includes state income, real estate, and personal property taxes. However, taxpayers cannot deduct more than $10,000 combined for these taxes. In addition to the standard and state and local taxes, taxpayers can take other deductions as well. These deductions can include medical expenses, mortgage interest, charitable donations, and certain educational expenses. There are also deductions for business expenses, such as commuting costs, business travel, and certain home office expenses. Taxpayers should keep in mind that they must itemize their deductions in order to take advantage of additional deductions. To do this, they must have enough deductions to exceed the standard deduction for their filing status. It is also important to remember that the total deductible amount cannot be more than the amount of income reported on the tax return. Taxpayers should consult a tax professional or the Internal Revenue Service to make sure they are taking advantage of all the deductions to which they are entitled. This can help minimize their tax liability and ensure they are in compliance with state and federal laws.

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What deductions can I take?

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