2019 Available Above-the-Line Tax Deductions and Credits – Did You Know?

2019 Available Above-the-Line Tax Deductions and Credits – Did You Know?

Even if you don’t itemize deductions, you may be eligible to claim multiple above-the-line deductions and/or tax credits on your 2019 federal tax return. Above-the-line deductions reduce your tax by lowering your taxable income. Tax credits are directly subtracted from your total tax for the year, and some are even refundable if your resulting tax is less than zero. Here is a quick checklist of major above-the-line deductions and tax credits for tax year 2019:

Above-the-Line Deductions:

  • Student Loan Interest
  • Tuition and Fees Deduction (NOTE: This deduction was originally discontinued by the Tax Cuts and Jobs Act of 2017, but was reinstated for tax years 2018, 2019 and 2020.)
  • Educator Expense Deduction
  • Standard IRA Contributions
  • Qualified Business Income (QBI) Deduction

Tax Credits:

  • Earned Income Credit
  • Child Tax Credit / Credit for Other Dependents
  • Credits for Care of Children, Other Dependents or the Elderly or Disabled
  • Premium Tax Credit (for health insurance obtained through an Affordable Care Act insurance exchange)
  • American Opportunity and Lifetime Learning Education Expense Credits
  • Adoption Credit
  • Credit for Prior Year Alternative Minimum Tax
  • Residential Energy Efficiency Credit

If you are self-employed or operate a small business, you may qualify for additional deductions for business and home office expenses. A tax professional can help you identify all of the deductions and credits that you are entitled to for 2019.