Tax Relief 2023: 3 Tax Breaks You Can Claim Without Itemizing

Upon filing the federal income tax returns, there is a choice whether to take the standard or to itemize deductions. In this article, read and find out what are the tax breaks that can be claimed without itemizing for the tax relief 2023!

Upon filing the federal income tax returns, a tax filer has the choice whether to take the standard deductions or itemize their deductions for the Tax Relief 2023. A taxable income may be reduced through itemizing deductions. This process means expenses must be listed to later be subtracted from the adjusted gross income (AGI).

According to Dixon, nonetheless, itemizing deductions is not the only method for the Tax Relief 2023. A tax filer may make “above the line” deductions or adjustments to the AGI. “Above the line” deductions are generally additional deductions that decrease the taxable income. These deductions are literally above the line 7 on the Form 1040 standard income tax return where the AGI must be written. In addition, these may be claimed by anyone and is not needed to be itemized.

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Student Loan Interest

According to Csiszar, a student loan interest is considered as an “above the line” deduction on Schedule 1 (line 33) of Form 1040. If a tax filer pays for their own student loans or their child’s, they may get a tax relief 2023 for up to $2,500 of paid interest.

HSA Contributions

Tax filers who have a health savings account (HSA) may get a tax relief 2023 for the contributions they have made using after-tax dollars. However, these funds must be paid for health expenses that are eligible.

IRA Contributions

A tax filer’s eligibility for the traditional individual retirement account (IRA) deduction is based on their income level and whether they or their spouse have a retirement plan sponsored by an employer. However, once a tax filer turns 72, they are no longer qualified for the IRA deductions.

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