![]() This can be used to pay for any eligible medical expense for the taxpayer, his spouse, or the eligible dependents. Tax deduction examples are medical, dental, vision, and other health expenses normally paid with post-tax money. HSA (Health Savings Accounts) allows individuals to pay for out of pocket health care expenses. ![]() The 2017 tax year allows $102,100 for foreign-earned income exclusion. First is by filing a tax return, second is by living and working abroad or outside the country, and third is for the individual to be in a foreign country for 330 days in any 365 day period. There are three things an individual needs to do in order to qualify. This is for overseas Americans living and working outside of the U.S. The tax items for tax year 2023 of greatest interest to most taxpayers include the following dollar amounts: The standard deduction for married couples. Furthermore, individuals having $80,000 or more in modified adjusted gross income as well as joint returns of $165,000 or more are entirely phased out. An excess of $65,000 in modified adjusted gross income or joint returns of $135,000 has phaseouts. For individuals with modified adjusted gross income, phaseouts are in effect. The maximum tax deduction a taxpayer can declare for student loan interest is still the same at $2,500. Moreover, if the taxpayer is single or a surviving spouse, there’s an increase of $1,550 for the individual’s standard deduction. It becomes $1,250 as opposed to the $1,200 back in the year 2016. There’s an increase in the standard deduction for the blind and aged for 2017. So, if any company or organization calls claiming you have unpaid taxes, DO NOT respond to these unsolicited calls.Īn adjustment increase of $50 on the standard deduction of heads of households is done by the IRS in the 2017 tax year. Do not respond to these calls as the IRS will typically send letters or notices via U.S. Like the tax brackets, the standard deduction will increase slightly in 2017 to 6,350 for singles and married taxpayers filing separately, and to 12,700 and 9,350 for married filing jointly and. The proposal points to a potential increase. UPDATE: Recently we have learned of instances where consumers are also getting automated calls regarding “unpaid taxes”. A new standard deduction of 24,000 for that family would increase taxable income by 4,900 - adding to tax burdens rather than taking away from them. There are special circumstances when they may reach out via phone regarding overdue tax bills or delinquencies, but almost always only after they’ve already sent a letter first. The IRS initiates most contacts with taxpayers through regular mail delivered by the U.S. does not make these automated calls to consumers and it is our policy not to engage in this form of marketing.If you have received such a call, please let us know by emailing so that we may report this unauthorized activity.Īdditionally, the IRS does not use email, text messages or social media to discuss tax debts or refunds with taxpayers. Deductions u/ Section 80C, 80D, 80E, 80CCC, 80CCD, 80DD, 80DDB, 80EE, 80EEA, 80G, and so on.We have recently become aware of companies and/or organizations who are calling people using the generic name "Tax Relief Center" for their phone solicitation activities.Under Section 80TTA and Section 80TTB as Savings Bank Interest.There are no exemptions and deductions under the new tax Regime Not-claimable Tax Deductions and exemptions under the new tax Regime It refers to income or investments made by the taxpayer that are not included in the calculation of their taxable income. It refers to expenses or investments made by the taxpayer that can be deducted from their gross income to arrive at gross income.ĭeductions can help reduce personal or business taxes Exemptions in the New Tax Regime
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