- Contribute to a traditional IRA (up to $6,000; additional $1,000 if you’re 50 or older).1
- Itemize deductions if they are more than the 2021 standard deduction of $12,550 ($12,400 in 2020) for singles, $18,800 for heads of household ($18,650 in 2020), and $25,100 for those married filing jointly ($24,800 for 2020).2
- Itemized deductions you may include:3
- Interest on a mortgage up to $750,000
- Charitable donations worth up to 60% of your adjusted gross income
- The portion of medical and dental expenses that exceed 7.5% of adjusted gross income
- Combined state and local sales, income and property taxes, capped at $10,000
- Casualty and theft losses attributed to a declared federal disaster
- Deduct up to $2,500 in interest paid on student loans4
- If you have a high deductible health care plan, deduct Health Savings Account (HSA) contributions up to $3,600 ($7,200 for family coverage; extra $1,000 if age 55 or older), up from $3,550 and $7,100, respectively, in 2020 5
Neither Lundervold Financial nor its agents or representatives may give tax or legal advice. Be sure to speak with a qualified professional about your unique situation.
Lundervold Financial is an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
5 Darla Mercado. CNBC. May 20, 2020. “IRS will allow people to put away more money in health savings accounts.” Accessed Jan. 6, 2021.
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