This page is outdated, please see our tax section for up to date information.
For all the talk about tax changes at the end of the year, many people are still left wondering what it means for them.
If you're one of those people, brush up on these 13 deductions before tackling your tax return. They are worth reviewing, as they could lower your tax bill.
1. Traditional IRA contributions. You have until April 15, to contribute up to $5,500 to a traditional IRA for 2015 and, if you qualify, deduct it on your tax return. Here are some guidelines:
2. Self-employed retirement plans. If you work for yourself, you can open a Simplified Employee Pension IRA by April 15, 2016, and deduct your contribution on your 2015 return. SEP IRAs may be an easy way to create your own retirement plan, and they can allow much higher contributions than traditional IRAs. Contributing to a SEP IRA does not exclude you from making an IRA contribution, but it may affect whether you can take a deduction for it. (A SEP IRA is considered an employer-sponsored plan).
3. Mortgage interest. You're allowed to deduct interest paid on your primary mortgage, as well as home equity loans, home improvement loans and lines of credit. In general, you may deduct interest on up to $1 million of primary mortgage debt and up to $100,000 of home equity balances.
4. State and local taxes. The federal government generally allows taxpayers to deduct property and income taxes paid to state and local governments.
5. Sales tax. If you didn't pay much state income tax -- or live in a state that doesn't tax income at all -- you may be able to choose to deduct sales tax instead. And you typically don't need receipts -- simply calculate an assumed amount using an IRS table or online calculator.
6. Charitable gifts. Donations to charity may ease your tax burden, but only if you have the right documentation. Cash contributions -- regardless of the amount -- require a canceled check or dated receipt. Any contribution of $250 or more requires bank or payroll deduction records or a written acknowledgment from the charity. Noncash contributions valued at more than $5,000 generally require an appraisal.
7. Education costs. Up to $2,500 in interest on loans for qualified higher education expenses may be deductible if your adjusted gross income is less than $75,000 ($150,000 if you're married and filing a joint return). A portion of your tuition and fees may be deductible if your adjusted gross income is $80,000 or less ($160,000 on a joint return). There are also two tax credits for college costs: the American Opportunity Credit and the Lifetime Learning Credit (See IRS Publication 970).
8. Medical and dental costs. The government sets a high hurdle for these expenses: You may be able to only deduct them if they exceed 7.5% of your adjusted gross income. Be aware that the Patient Protection and Affordable Care Act decreases this deduction for the 2015 tax year because those expenses generally will be deductible only if they exceed 10% of your adjusted gross income. The law does include a temporary waiver for seniors and their spouses if either has reached age 65 before the close of tax years 2015-2016.
9. Health insurance. Self-employed taxpayers get a break on one of their biggest financial headaches. In general, they may be able to deduct all of their health insurance premiums.
10. Health savings accounts. If your family was covered by a high-deductible health insurance plan in 2015, you may be able to contribute up to $6,650 to a health savings account ($3,350 if it only covered yourself). Contributions are deductible, and withdrawals for qualified medical expenses are tax-free. Similar to IRAs, you have until April 15 to contribute for the previous tax year.
11. Job-related moving expenses. If you moved to take a new job, you may be able to deduct your expenses if you pass these two IRS tests:
12. Guard and Reserve travel expenses. If you traveled more than 100 miles to attend a drill and spent the night, you may be able to deduct lodging expenses, half the cost of your meals and 57.5 cents per mile for travel. You also can deduct tolls and parking fees.
13. Out-of-pocket teacher expenses. Teachers, aides, counselors and principals -- kindergarten through 12th grade -- should be able to deduct up to $250 for classroom supplies purchased in 2015.