* IRA and HSA contributions
If you made a contribution to
your traditional IRA for 2016, or if you plan to make a 2016 contribution by
April 18, 2017, you may qualify to deduct up to the maximum contribution amount
of $5,500 ($6,500 if you're age 50 or older). Income limitations apply in some
cases, and you can't deduct contributions to Roth IRAs.
Health Savings Accounts (HSAs)
are IRA-like accounts set up in conjunction with a high-deductible health
insurance policy. The annual contributions you make to your HSA are deductible.
Contributions are invested and grow on a tax-deferred basis, and you're allowed
to withdraw money in the account tax-free to pay for your unreimbursed medical
expenses. For 2016, you can deduct up to the contribution limit of $3,350 if
you're filing single and $6,750 when you're married filing jointly. You may
also be able to deduct an additional $1,000 if you were age 55 or older and
made a catch-up contribution to your HSA.
* Student loan interest and tuition fees
Deduct up to $2,500 of interest
on student loans for yourself, your spouse, and your dependents on your 2016
return. For 2016 returns, you can also deduct up to $4,000 of tuition and fees
for qualified higher education courses. Income limitations apply, and you must
coordinate these deductions with other education tax breaks.
* Self-employment deductions
If you're self-employed, you
can generally deduct the cost of health insurance premiums, retirement plan
contributions, and one-half of self-employment taxes.
* Other deductions
Alimony you pay, certain moving
expenses, and early savings withdrawal penalties are also deductible on your
2016 return, even if you don't itemize. Teachers can deduct up to $250 for
classroom supplies purchased out-of-pocket in 2016.
Contact our office at (518) 798-3330 for more
information on these and other costs you may be able to deduct on your 2016 tax
return.
