![]() ![]() This information was provided from US Bank, an endorsed company of ADA Member Advantage. This list of available credits and deductions, a little research and a skilled tax preparer can go a long way towards reducing your tax burden and saving you more money. You’ll need to speak with your tax preparer for details, but some examples of holdover deductions include business losses from your dental practice and charitable contributions. Many deductions can be carried over to later years if they’re not used in the year they occur. Lost deduction from prior years: Even if you didn’t take advantage of a deduction last year, it doesn’t mean all is lost.Even taxpayers with zero tax liability are eligible for a $1,400 credit per child. Eligibility income limits have substantially increased from $75,000 to $200,000 (single filers) and from $110,000 to $400,000 (married filing jointly). The child tax credit has doubled: From $1,000 to $2,000 per child under the age of 17.Now, up to $6,000 can qualify for the credit (although the $5,000 still applies to reimbursement accounts). Child care credit: Working people used to be limited to a $5,000 child care credit through their employer-based reimbursement account.You can claim the credit on your tax return if you, your spouse or your dependents are enrolled at an eligible institution and you were responsible for paying college expenses. Lifetime learning credit: Thinking of honing your business acumen to benefit your dental practice? This credit is available to anyone taking college classes (whether towards a degree or not), and is good for a 20 percent credit on tuition expenses, with a maximum of $2,000 on the first $10,000.Interest-deductible HELOCs (Home Equity Line of Credit) and second mortgages are available to homeowners if they (a) use the loan to make “substantial improvements” to their home, and (b) the combined total of their first mortgage balance and their HELOC or second mortgage does not exceed $750,000. Deductions on home equity loans and lines of credit with higher limits: As of 2018, the interest on home equity loans used for anything other than capital improvements on your primary home are no longer deductible.When you sell or pay off the loan, you’re allowed to deduct all of the points not yet deducted (unless you refinance with the same lender). Refinancing points must be deducted over the life of the loan. When you refinance, you can deduct the points as well-with a twist. ![]()
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