How can I maximize my tax deductions this year?

How can I maximize my tax deductions this year?

To maximize your tax deductions, consider itemizing your deductions instead of taking the standard deduction. You can also look into deductions for mortgage interest, medical expenses, and charitable contributions.

What documents do I need to gather for itemizing?

You'll need documents like your W-2s, 1099s, receipts for deductible expenses, and any records of charitable donations.

Are there any specific deductions for freelancers?

Yes, freelancers can deduct business expenses such as home office costs, supplies, and travel expenses related to work.

What about tax credits? Are they different from deductions?

Yes, tax credits directly reduce your tax bill, while deductions reduce your taxable income. It's often more beneficial to claim credits when available.