WASHINGTON – With W2s arriving in the mail, taxes are on people’s minds. Don’t forget to look for these deductions when it comes to the big day.
People who have donated clothing or furniture to Goodwill, the Salvation Army and other charities can deduct the value of those items from the taxes owed.
Deductions are offered for people who have recently refinanced their homes. Any points paid to refinance can be deducted monthly over the life of the new loan.
Teachers are in luck. They can get as much as $250 deducted for school supplies and classroom materials. Higher education expenses are deductible up to $4,000, if a person’s adjusted gross income is $65,000 or less ($130,000 for a joint return).
Health insurance premiums can be deductible as part of a person’s total medical expenses, but they have to exceed 7.5 percent of a person’s adjusted gross income.
Read more about energy savings deductions, as well as deducting tax-planning and investment expenses on MSNMoney.com