What are the limits on tax deductions for individuals?

What are the limits on tax deductions for individuals?

The limits on tax deductions for individuals can vary based on the type of deduction. For example, the standard deduction for 2023 is $13,850 for single filers.

Are there specific limits for mortgage interest deductions?

Yes, mortgage interest deductions are limited to interest on the first $750,000 of mortgage debt for loans taken out after December 15, 2017.

What about charitable contributions?

Charitable contributions can be deducted up to 60% of your adjusted gross income, depending on the type of donation.

How do these limits affect my overall tax return?

These limits can significantly impact your taxable income, potentially lowering your tax liability and increasing your refund.

Can I carry over any unused deductions to the next year?

Yes, some deductions, like charitable contributions, can be carried over to future tax years if you exceed the limits.