What deductions can I take?

In Maryland tax law, there are several deductions you can take that can reduce your overall taxable income. The three most common deductions are standard deductions, itemized deductions, and personal exemptions. Standard deductions refer to specific amounts of money you can deduct from your taxable income, regardless of your specific financial situation. In Maryland, the standard deductions for 2021 are $2,500 for individuals, $3,000 for single heads of household, and $5,000 for married couples filing jointly. Itemized deductions refer to specific expenses that you can deduct from your taxable income based on your particular financial circumstances. Examples of itemized deductions in Maryland include medical expenses, home loan interest, charitable contributions, and state and local taxes. Personal exemptions refer to specific amounts of money you can deduct from your taxable income for each person included on your tax return, such as yourself, your spouse, and any dependents. In Maryland, the personal exemption amount for 2021 is $2,000 per person. When filing your taxes, you can choose to take either the standard deductions, itemized deductions, or a combination of the two. It’s important to keep track of all your expenses throughout the year so that you can take advantage of the deductions you’re entitled to.

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What deductions can I take?

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