Taxes: Deductions For Non-Itemizers

Even if you’re just going to claim the standard deduction, Don’t Mess With Taxes says there’s above-the-line “deductions” you can take.

They include such things as education-related costs (for teachers as well as students), retirement and health plan contributions and moving expenses, and are available to every eligible taxpayer, even those who itemize.

But they are especially welcome by filers who don’t use Schedule A, since these above-the-line options represent a sort of side-door into the tax deduction room that you previously have felt locked out of.

A good way to shave that tax bill, even if you’re not going to play the whole itemized deduction game. — BEN POPKEN

Deductions for nonitemizers [Don’t Mess With Taxes]

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  1. brilliantmistake says:

    This a great thing for students. If you receive a fellowship, you often won’t recieve either a w-2 or a 1099. Basically, the irs doesn’t consider you gainfully employed, but you are receiving taxable income all the same (You can thank the Reagan Administation for student taxes). So you can’t deduct things like book costs, but they can be excluded from you income, i.e. they are subtracted from your income before you ever enter your income on the tax form. So if you got a $5000 stipend and spent $600 on books, you only have to enter $4400 as your income. You still have to save receipts, but you don’t have to itemize on the form.

    The irs webpage has info at
    http://www.irs.gov/individuals/students/article/0,,id=9667…
    scroll down to “Taxable Scholarships and Fellowships”