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February 17, 2022
Question

According to my income, I know there is an amount needed to meet for deductions, how do I find that amount?

  • February 17, 2022
  • 1 reply
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1 reply

February 17, 2022

To clarify, do you mean you want more information on deductions which are based on income?

 

  1. Under itemized deductions, you can only deduct medical expenses which exceed 7.5% of your Adjusted Gross Income (AGI). For example, if your income is $100,000 for 2021, you need to have medical expenses above $7,500 ($100,000 x 7.5%) for you to take a deduction for it.
  2. You can take a deduction for casualty and theft losses but only losses in excess of 10% of your AGI are deductible after subtracting $100 from the loss amount.

 

In general, to take the itemized deductions, your itemized deductions must be greater than standard deduction. The limits for 2021 Standard Deductions are as follows:

  1. $12,550 for single filers
  2. $12,550 for married couples filing separately
  3. $18,800 for heads of households
  4. $25,100 for married couples filing jointly
  5. $25,100 for surviving spouses