What deductions can I take?
In California, taxpayers are able to take deductions for various expenses in order to reduce their taxable income and ultimately, their tax liability. The most common deductions for individuals include state and local income taxes, mortgage interest, property taxes, and charitable donations. In some cases, there are additional deductions available based on certain types of expenses. Income Taxes: The State of California allows the deduction of any state and local taxes paid in the current tax year. This includes any outstanding payments of estimated taxes or property taxes. Mortgage Interest: Homeowners may be able to deduct the interest paid on their home mortgages. This applies to loans with a balance of up to $1 million dollars, as well as any loan secured by a home. Property Taxes: Property taxes are also deductible, up to a certain amount each year. Property taxes must be paid to a California taxing authority to qualify for this deduction. Charitable Donations: Contributions to charitable organizations are also deductible, up to 50% of the individual’s adjusted gross income. Other Deductions: There are many other deductions available, including deductions for medical expenses, certain job-related expenses and certain education-related expenses. It is important for taxpayers to be familiar with all of the deductions available to them and how they can lower their taxable income. It is important to consult with a qualified tax professional to understand exactly what deductions can be taken and the best ways to use them in order to reduce your tax bill.
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