Additionally, you should anticipate some new deductions on your taxes for 2021. For those unfamiliar, tax deductions are kind of important as they can reduce your Adjusted Gross Income or AGI. In turn, this will reduce your overall taxes, increase your refund, and decrease the taxes you owe.

Proof by deduction is a process in maths where a statement is proved to be true based on well-known mathematical principles. The word deduce means to establish facts through reasoning or make conclusions about a particular instance by referring to a general rule or principle.

If your expenses throughout the year were more than the value of the standard deduction, itemizing is a useful strategy to maximize your tax benefits. Keep in mind that not all expenses qualify when you itemize. Itemized deductions include products, services, or contributions that have been approved by the IRS.

Here’s what it boils down to: If your standard deduction is less than your itemized deductions, you probably should itemize and save money. If your standard deduction is more than your itemized deductions, it might be worth it to take the standard and save some time.

If you want to deduct your real estate taxes, you must itemize. In other words, you can’t take the standard deduction and deduct your property taxes. For 2019, you can deduct up to $10,000 ($5,000 for married filing separately) of combined property, income, and sales taxes.

The 2020 mortgage interest deduction Mortgage interest is still deductible, but with a few caveats: Taxpayers can deduct mortgage interest on up to $750,000 in principal.

This is known as our adjusted gross, or taxable, income. This deduction provides that up to 100 percent of the interest you pay on your mortgage is deductible from your gross income, along with the other deductions for which you are eligible, before your tax liability is calculated.

Interest paid on that loan can’t be deducted as a rental expense either, because the funds were not used for the rental property. The interest expense is actually considered personal interest, which is no longer deductible.

The standard deduction reduces the amount of income you have to pay taxes on. Taking the standard deduction means you can’t deduct home mortgage interest or take the many other popular tax deductions — medical expenses or charitable donations, for example.

For 2020, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $350 and the individual’s earned income (not to exceed the regular standard deduction amount).

$12,200

Homeowners insurance is one of the main expenses you’ll pay as a homeowner. Homeowners insurance is typically not tax deductible, but there are other deductions you can claim as long as you keep track of your expenses and itemize your taxes each year.

In addition to the office space itself, the expenses you can deduct for your home office include the business percentage of deductible mortgage interest, home depreciation, utilities, homeowners insurance, and repairs that you pay during the year.

No, home inspection fees are not tax-deductible unless it’s for business or investment purposes. Home inspections for your home purchase or annual maintenance purposes are a personal expense, not tax-deductible. Home inspections for investment properties are tax-deductible as a business expense.

You can claim the cost of premiums you pay for insurance against the loss of your income. You must include any payment you receive under such a policy on your tax return. If the policy provides benefits of an income and capital nature, only that part of the premium that relates to the income benefit is deductible.

You can claim the cost of premiums you pay for insurance against the loss of your income. You must include any payment you receive under such a policy on your tax return.

The loan protection insurance is a scam that amounts to a limited life / income cover. Its not deductible. The receipt of the policy proceeds would be exempt also. Same sort of insurance as credit card insurance and a myriad of scams that car dealers run.

How to Claim (e-Filing)

1. Login with your SingPass or IRAS Unique Account (IUA) at myTax Portal.
2. Go to Individuals > “File Income Tax Return”.
3. Select “Edit My Tax Form”.
4. Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
5. Go to “Life Insurance”.
6. Click “Update” and enter your claim.