What are your favorite tax deductions and credits for 2017?

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Bwlonge
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What are your favorite tax deductions and credits for 2017?

Post by Bwlonge » Thu Dec 14, 2017 8:04 pm

It's coming. Any obscure deductions or credits you like to leverage that you'd like to share with the rest of the class?

livesoft
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Re: What are your favorite tax deductions and credits for 2017?

Post by livesoft » Thu Dec 14, 2017 8:10 pm

I like the standard deduction myself. :)

It tells me that I am not overpaying for my property, state, and local taxes.
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Mike Scott
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Re: What are your favorite tax deductions and credits for 2017?

Post by Mike Scott » Thu Dec 14, 2017 8:16 pm

I have a happy coincidence of a couple of itemized deductions that also count toward state income tax credits. Of course, it only works if you have a state income tax and tax credits available. This is my year to bunch deductions so I've been trying to get them wrapped up.

nodenuff2
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Re: What are your favorite tax deductions and credits for 2017?

Post by nodenuff2 » Thu Dec 14, 2017 9:25 pm

By far and away my favorite deduction will be the charitable donation deduction. When the year is over giving just encourages more giving.
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Traveler
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Re: What are your favorite tax deductions and credits for 2017?

Post by Traveler » Thu Dec 14, 2017 9:33 pm

The ones I can actually take. There aren't too many

bjames310
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Re: What are your favorite tax deductions and credits for 2017?

Post by bjames310 » Thu Dec 14, 2017 9:37 pm

livesoft wrote:
Thu Dec 14, 2017 8:10 pm
I like the standard deduction myself. :)

It tells me that I am not overpaying for my property, state, and local taxes.
How do you precisely figure that out? I’ve seen calculators to estimate how much of a refund you can get from mortgage interest and property taxes, but not a comprehensive calculator that takes into consideration all such deductions with income.

livesoft
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Re: What are your favorite tax deductions and credits for 2017?

Post by livesoft » Thu Dec 14, 2017 9:57 pm

bjames310 wrote:
Thu Dec 14, 2017 9:37 pm
How do you precisely figure that out? I’ve seen calculators to estimate how much of a refund you can get from mortgage interest and property taxes, but not a comprehensive calculator that takes into consideration all such deductions with income.
I don't think you will like my answer: I precisely figure that out by adding up my mortgage interest, property taxes, state taxes which is a precise number. If that number is less than the standard deduction, I'm happy.
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Kenkat
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Re: What are your favorite tax deductions and credits for 2017?

Post by Kenkat » Thu Dec 14, 2017 10:03 pm

American Opportunity Tax Credit (AOTC) x 2.

The downside of course is two kids in college...

runner3081
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Re: What are your favorite tax deductions and credits for 2017?

Post by runner3081 » Thu Dec 14, 2017 10:04 pm

livesoft wrote:
Thu Dec 14, 2017 8:10 pm
I like the standard deduction myself. :)

It tells me that I am not overpaying for my property, state, and local taxes.
That is the same thing I think!

Standard deduction here as well.

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FiveK
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Re: What are your favorite tax deductions and credits for 2017?

Post by FiveK » Fri Dec 15, 2017 12:27 am

Donor advised fund, using highly appreciated Megacorp stock we should have sold a long time ago (ESPP shares) but didn't. Seems a good use of them now.

Nate79
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Re: What are your favorite tax deductions and credits for 2017?

Post by Nate79 » Fri Dec 15, 2017 12:30 am

State tax. (Oregon)

Sambuca00
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Re: What are your favorite tax deductions and credits for 2017?

Post by Sambuca00 » Fri Dec 15, 2017 12:34 am

Child credits - yes, raising children costs citizens of your nation money and you should not penalize them if you hope they eventually will be contributing to your country. Ultimately, the war between developed nations will be over fertility rates.

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White Coat Investor
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Re: What are your favorite tax deductions and credits for 2017?

Post by White Coat Investor » Fri Dec 15, 2017 12:35 am

My favorite is state income tax deduction. I like it so much I'm paying 2016, 2017, and 2018 taxes this year.
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Re: What are your favorite tax deductions and credits for 2017?

Post by White Coat Investor » Fri Dec 15, 2017 12:36 am

Sambuca00 wrote:
Fri Dec 15, 2017 12:34 am
Child credits - yes, raising children costs citizens of your nation money and you should not penalize them if you hope they eventually will be contributing to your country. Ultimately, the war between developed nations will be over fertility rates.
And water.
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Re: What are your favorite tax deductions and credits for 2017?

Post by itstoomuch » Fri Dec 15, 2017 1:22 am

Depreciation. :greedy
Medical expenses and medical insurances :(
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randomizer
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Re: What are your favorite tax deductions and credits for 2017?

Post by randomizer » Fri Dec 15, 2017 1:24 am

How does one choose a favorite from among one's children?

mega317
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Re: What are your favorite tax deductions and credits for 2017?

Post by mega317 » Fri Dec 15, 2017 1:26 am

I kind of like the mortgage interest and property tax because it means I bought a house! I'm sure I'll get over it.

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catdude
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Re: What are your favorite tax deductions and credits for 2017?

Post by catdude » Fri Dec 15, 2017 1:31 am

It's not a deduction or credit, but this year -- in lieu of doing a Roth conversion -- I'm taking advantage of the 0% LTCG rate for folks in the 15% bracket. I needed some $$$ about a month ago to buy a car, so I tapped my Vanguard taxable account. I figure I saved about $1,400 in federal taxes. Sweet!! :moneybag :sharebeer
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GerryL
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Re: What are your favorite tax deductions and credits for 2017?

Post by GerryL » Fri Dec 15, 2017 1:42 am

This year: medical.
My former employer gave me a pot of money that I can use to pay medical and LTC insurance premiums. Tax free. While my colleagues on Facebook talk about ways to use that money NOW, I am holding on to it until I start taking SS and RMDs and will no longer be able to take advantage of any medical deductions. Then I will use it each year to pay my LTC premium ... if not more.

bjames310
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Re: What are your favorite tax deductions and credits for 2017?

Post by bjames310 » Fri Dec 15, 2017 2:53 am

livesoft wrote:
Thu Dec 14, 2017 9:57 pm
bjames310 wrote:
Thu Dec 14, 2017 9:37 pm
How do you precisely figure that out? I’ve seen calculators to estimate how much of a refund you can get from mortgage interest and property taxes, but not a comprehensive calculator that takes into consideration all such deductions with income.
I don't think you will like my answer: I precisely figure that out by adding up my mortgage interest, property taxes, state taxes which is a precise number. If that number is less than the standard deduction, I'm happy.
Ahhh got it. Thanks.

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BillyMot
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Re: What are your favorite tax deductions and credits for 2017?

Post by BillyMot » Fri Dec 15, 2017 3:18 am

My favorite deduction will be the charitable donation deduction.

spitty
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Re: What are your favorite tax deductions and credits for 2017?

Post by spitty » Fri Dec 15, 2017 6:41 am

1-Selling UAA stock for a $29k loss---that one stung!
2- Charitable giving $11k

basspond
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Re: What are your favorite tax deductions and credits for 2017?

Post by basspond » Fri Dec 15, 2017 6:55 am

Bunching SALT and contributions.

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Taz
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Re: What are your favorite tax deductions and credits for 2017?

Post by Taz » Fri Dec 15, 2017 7:05 am

Charity by far.
No more AOTC with Florida's Bright Future's Academic Scholarship now paying 100% tuition + $300/semester books as of this fall.
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rkhusky
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Re: What are your favorite tax deductions and credits for 2017?

Post by rkhusky » Fri Dec 15, 2017 8:16 am

+1 for child tax credit. + child exemptions this year. I'm hoping to be one of the lucky ones that pay negative taxes soon, although Roth conversions may prevent that. A nice choice to have.

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Sheepdog
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Re: What are your favorite tax deductions and credits for 2017?

Post by Sheepdog » Fri Dec 15, 2017 8:31 am

I have itemized for decades. My favorite newer benefit is the QCD process. Their sources are no longer income so the QCDs are not deductible. I expect that my 2017 tax return will use the standard deduction for the first time in a bunch of years. I will calculate the deductions and credits to be sure.
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mrgeeze
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Re: What are your favorite tax deductions and credits for 2017?

Post by mrgeeze » Fri Dec 15, 2017 8:37 am

nodenuff2 wrote:
Thu Dec 14, 2017 9:25 pm
By far and away my favorite deduction will be the charitable donation deduction. When the year is over giving just encourages more giving.

+1

Cuzz35
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Re: What are your favorite tax deductions and credits for 2017?

Post by Cuzz35 » Fri Dec 15, 2017 8:58 am

Personally, IRA and HSA contribution deductions. Most bogleheads probably wouldn't do traditional IRA contributions and my tax rate but having a lower income means cash flow needs to be higher. Plus in the past I've been able to drop AGI low enough to get the savers credit. Not this year though.

Clients love the syndicated conservation easement. For credits they go with state film and low income housing credits.

SimonJester
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Re: What are your favorite tax deductions and credits for 2017?

Post by SimonJester » Fri Dec 15, 2017 9:01 am

Sambuca00 wrote:
Fri Dec 15, 2017 12:34 am
Child credits - yes, raising children costs citizens of your nation money and you should not penalize them if you hope they eventually will be contributing to your country.
I love the fact this ends at age 16. Because my 17 and 18 year old cost less then a 6 year old, Not! They should extend this through college years...
Last edited by SimonJester on Fri Dec 15, 2017 9:11 am, edited 1 time in total.
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djpeteski
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Re: What are your favorite tax deductions and credits for 2017?

Post by djpeteski » Fri Dec 15, 2017 9:02 am

Like others I enjoy the charitable giving deduction.

One deduction I love NOT having: mortgage interest! Debt free baby!

scrabbler1
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Re: What are your favorite tax deductions and credits for 2017?

Post by scrabbler1 » Fri Dec 15, 2017 9:03 am

basspond wrote:
Fri Dec 15, 2017 6:55 am
Bunching SALT and contributions.
Same here, but I expect my days of trying to bunch deductions will come to an end next year with the new tax bill.

tomd37
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Re: What are your favorite tax deductions and credits for 2017?

Post by tomd37 » Fri Dec 15, 2017 9:27 am

As an elderly couple in excellent health with no adjustments to income, two personal exemptions and zero dependent exemptions, no qualifying itemized deductions, no tax credits of any type, and no other taxes our favorite reduction to income is the Qualified Charitable Distribution. This QCD, which is not eligible to be counted as an itemized charitable deduction, reduces our taxable income on Form 1040 line 15b by an equal dollar amount. And we greatly enjoy giving to charity! :D We were pleased to see the QCD become permanent tax law until our federal leaders decide to take that away also. :annoyed
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Edie
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Re: What are your favorite tax deductions and credits for 2017?

Post by Edie » Fri Dec 15, 2017 10:12 am

Kenkat wrote:
Thu Dec 14, 2017 10:03 pm
American Opportunity Tax Credit (AOTC) x 2.

The downside of course is two kids in college...
Taz wrote:
Fri Dec 15, 2017 7:05 am
Charity by far.
No more AOTC with Florida's Bright Future's Academic Scholarship now paying 100% tuition + $300/semester books as of this fall.
We were going to have 3x AOTC next year, but our state school is doing something similar to the above, which means 3 in college will cost the same as 2 in college (plus the middle of the three is going to be at the community college which might as well cost nothing for how much it impacts our budget in comparison). The school program is AMAZING, so helpful makes me want to cry.

Favorite after AOTC is the retirement savings contribution credit.
SimonJester wrote:
Fri Dec 15, 2017 9:01 am
Sambuca00 wrote:
Fri Dec 15, 2017 12:34 am
Child credits - yes, raising children costs citizens of your nation money and you should not penalize them if you hope they eventually will be contributing to your country.
I love the fact this ends at age 16. Because my 17 and 18 year old cost less then a 6 year old, Not! They should extend this through college years...
Yea, that would be super helpful, it goes away right when they are getting really expensive. Still get credit for 2 more years with our youngest, but it would have been nice to have it extend through age 18 for the older 3 (I see the AOTC as offsetting the loss of the child tax credit once they hit college age, even though they get a lot more expensive then).

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Sheepdog
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Re: What are your favorite tax deductions and credits for 2017?

Post by Sheepdog » Fri Dec 15, 2017 10:12 am

tomd37 wrote:
Fri Dec 15, 2017 9:27 am
As an elderly couple in excellent health with no adjustments to income, two personal exemptions and zero dependent exemptions, no qualifying itemized deductions, no tax credits of any type, and no other taxes our favorite reduction to income is the Qualified Charitable Distribution. This QCD, which is not eligible to be counted as an itemized charitable deduction, reduces our taxable income on Form 1040 line 15b by an equal dollar amount. And we greatly enjoy giving to charity! :D We were pleased to see the QCD become permanent tax law until our federal leaders decide to take that away also. :annoyed
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