It’s tax season again. But don’t panic! We’ve put together a list of common deductions and other things to consider when you do your taxes this year.
If you moved more than 50 miles from your old home to start your residency, you could qualify for a moving deduction. This includes the cost of transportation and storage of household goods, travel (including lodging), professional movers, and/or mileage, plus parking fees and tolls, for driving your own vehicle and household goods to the new area.
As a member of CIR, your union dues qualify as a tax deduction, if they and other miscellaneous itemized deductions are above 2% of your adjusted gross income.
Retirement Saver’s Credit
If you contributed to a Roth or Traditional IRA, or made elective deferrals to a 401(k) or other retirement plan, were not a student for more than five months of the year, and have adjusted gross income under $30,500 if single or $61,000 if married, you may be eligible for this tax credit.
Employee Business Expenses
If you or your spouse had expenses related to a job that were not reimbursed by your employer, such as union dues or uniforms, you may be able to deduct your work-related expenses as an itemized deduction, subject to limitations.
Child Care Credit
If you have child-care bills, between 20-35% of the total, up to $6,000 for two or more children (or $3,000 for one child), they can qualify for the Child Care Credit. The qualifying expenses must be reduced by the amount of any dependent care benefits provided by your employer that you deduct or exclude from your income.
Tax Preparation Fee
If you itemize deductions, you may receive a deduction for your tax preparation fees paid in 2015.
Student Loan Interest
Typically, the time during your residency training will be the best time you can take advantage of this tax deduction. Once you are an attending, your income may be too high to qualify. A maximum of $2,500 of student loan interest can be deducted for 2015.
Education Credit and Tuition/Fees Deduction
The Lifetime Learning Credit allows a credit up to $2,000 for qualified education expenses incurred during 2015, while the Tuition and Fees Deduction provides a maximum $4,000 deduction from adjusted gross income for qualified tuition and fees, thus reducing the amount of income that is taxable. Income limits apply for eligibility.