Top Six Personal Tax Deductions

Most people are fairly familiar with business tax deductions and investment deductions, but since personal tax deductions are fairly strict, many people choose not to bother. You can save a bundle, however, if you understand your options with personal tax deductions. Having an experienced CPA in your corner is a good start, but if you aren't inclined to seek professional help with your taxes, you'll need to conduct your own research. Following are the top six personal tax deductions that you might want to consider.

Mortgage Interest and Property Taxes
Although you can't deduct your mortgage from your income taxes, you can deduct the interest you pay on that mortgage. In order to qualify for this personal tax deduction, you must be able to prove that you have a current mortgage with a lender and that you pay a certain interest rate. At the end of every tax year, you can add up the amount of interest you've paid thus far and deduct that amount from your taxes.

To protect yourself, make sure to save any documentation that pertains to your mortgage, including canceled checks, correspondence with your mortgage lender and any information regarding late payments. If you aren't diligent about meeting your financial obligations, you may not qualify for this personal tax deduction.

Donations to Charity
This is one of the personal tax deductions that often gets people into trouble. The only way that you can deduct donations to charity is if they are approved for tax-deductible donations. Before you write a check or hand over your credit card, make sure you've seen proof that you can deduct that amount from your taxes. Request a receipt and you'll have all the proof you need.

Remember that when it comes to personal tax deductions, you'll need to be able to provide proof of a charitable donation in the event that you are audited. Don't make donations over the phone with your credit card -- there are far too many scams to trust this method -- and make sure you have seen proof that they are a valid charity.

Personal Tax Deductions

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