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The Curious Bag
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Taxpayers qualify for a standard deduction on annual tax returns of $5,700 if filing single or if married and filing separately, of $11,400 for qualifying widowers or if married and filing jointly, and of $8,350 if filing as head of household, according to H&R Block. If your deductible expenses are higher than the standard deduction, you can itemize and write off additional expenses.
Identification
Tax write-offs refer to expenses that you can claim as deductions, which will reduce your taxable income and therefore your tax bill, according to H&R Block.
Effects
Only a percentage of qualifying expenses can be written off at tax time. The percentage is fixed based on your income tax bracket. For example, if you have a $1,000 expense and your tax bracket percentage is 25 percent, you can write off $250, reducing your gross taxable income by that amount.
Types
You may write off charitable donations, business expenses and qualifying personal expenses such as real estate tax and interest, tuition and fees, medical expenses and casualty losses, according to H&R Block.
Benefits
Writing off qualifying expenses allows you to claim more than your standard deduction, reducing the amount you owe the IRS and increasing your tax refund if you overpaid during the current tax year.
Considerations
The IRS recommends that you keep a copy of your tax returns for 3 to 7 years in most cases.
Source:
H&R Block: Tax Tips and Calculator
IRS.gov: How Long Should I Keep Records?
More Information:
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