Depending upon your situation, here are some deductions and credits you may be eligible for that you can claim even if you don’t itemize your tax return.
- Contributions to individual retirement arrangements, including IRAs, SEP-IRAs, Simple IRAs and solo 401(k)s (these phase out at higher incomes)
- 50% of self-employment taxes
- Student loan interest up to $2,500
- Tuition and fees for higher education up to $4,000 if you fall within income limits
- Health savings account contributions made with personal funds
Deductions you may be eligible to claim only if you itemize:
- The child and dependent care tax credit is valued at 20%–35% of the costs of allowable care expenses, up to $3,000 in expenses for the care of one qualifying person. A taxpayer caring for two or more dependents could claim a maximum credit of $6,000.
- The American opportunity tax credit provides a maximum credit of $2,500 for qualifying educational expenses paid for eligible students. The credit is available only for tuition paid for the first four years of post-secondary education and there are income limits.
- The lifetime learning credit provides a maximum credit of $2,000 per year for postsecondary educational costs. There are also income limits, and the credit is worth only 20% of qualifying expenses, up to a $10,000 maximum.
- Depending on your situation, there are probably other deductions and credits you can claim. Dapo will be able to identify any tax breaks you may be eligible for.