How To Get The Top 3 Tax Deductions for 2023

The beginning of the new year is not only a time for new goals, but old ones — like compiling tax deductions from receipts and credit card records.

Here are some of the top write-offs, courtesy of Josh Dudick of Top Dollar.

• Mortgage Interest. If you have a current mortgage on a property, you can deduct “depending on the interest you pay on that mortgage and the insurance you pay for that mortgage. Any interest that you pay on a mortgage toward a property can be deducted from your tax (up to $750,000), this also includes loans for second homes if it stays within the limits of $750,000 and any home equity loans.”
• Property Taxes. While you can’t write off every dollar you pay in real estate taxes, this is a valuable deduction for most homeowners. “The amount you can deduct from your property taxes will depend on your location and marital status. You can deduct up to $5,000 if you are single, or a married couple filing separately, or up to $10,000 if you are a married couple filing jointly.”
• Home Business. If you run a business from your home then you will be able to deduct some expenses when it comes to the costs of maintaining that space. “The bigger the space you use for your business, the more you can deduct. However, it must be noted that working from home while employed does not fit into this category, and you must be regularly using that space for your business.”

Keep in mind that their are a wide range of small business/self-employed expenses you can deduct. You can find the IRS list at https://www.irs.gov/publications/p535

For now, start a file folder and fill it with items that document your expenses. You’ll be surprised at how much they add up to reduce your income tax bill.

By John F. Wasik, Contributor