Simple Tax Deductions

Neil Kokemuller for Demand Media / OpposingViews writes: Understanding the common and simple tax deductions available to you when you file taxes can save you hundreds or thousands of dollars. Despite the fact that nearly 70 percent of homes in the U.S. are occupied by owners, potentially creating significant deduction opportunities, most taxpayers take the standard IRS deduction amounts because they are simpler to claim and require less organization and effort at return time.

Home Deductions

Tax deductions don't get any simpler than mortgage interest and property taxes. These are common expenses for homeowners that often alone exceed the standard deductions of $5,950 for single filers and $11,900 for married people filing jointly. Your mortgage lender should send a statement in January showing what you've paid in mortgage interest and what has been paid in property taxes on your behalf. Second-home mortgage interest and home equity loan and line of credit interest are also commonly deductible.

State and Local Taxes

Another simple tax deduction that most people could take is the amount of income taxes you paid to state and local taxing authorities. In essence, the IRS gives filers who live in states that collect income taxes a discount. This includes the majority of income earners. Claiming these deductions is a simple matter of maintaining records of what you pay, which can usually be found on your year-end W-2 form from your employer. Tax preparation software programs often sync your federal and state returns electronically to simplify this process.

Charitable Giving

Being generous also makes for a simple tax deduction. Any money or valuables you donate without strings to a 501(c)(3) nonprofit organization is deductible. This includes money you give to churches. It also includes valuables and clothing you donate to the local Goodwill or Salvation Army. While claiming this deduction is simple, you do need to plan ahead and keep receipts and records of all giving. Nonprofits often provide receipts for financial gifts. For donations of items, you often need to keep a record of what you donated and get a dated receipt at the time of drop-off.

Job Expenses

Though it requires a bit more record-keeping and organization, you can also claim expenses paid toward your job or profession. This includes money spent on industry publications or professional conferences. Professional liability insurance is also deductible. Teachers can normally deduct supplies purchased personally for job use. Additionally, keep track of travel and services for resume and cover letter writing as you can deduct costs incurred when hunting for a job. Most such miscellaneous expenses can be deducted to the extent they exceed 2 percent of your adjusted gross income, which you will figure out on your tax form.