4 Deductions — Below the Line

U.S. Tax Law Fundamentals · 3:32

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Lyrics

[Verse 1]
When April comes and taxes call
You've got choices, don't let them fall
Standard deduction, simple and clean
Or itemize if it's worth the scene
Twenty-seven fifty for married filing joint
Thirteen seven for single, that's the point
Compare them both and take the best
Below the line, you'll pass the test

[Chorus]
Below the line deductions, make your choice
Standard or itemized, let math be your voice
SALT and mortgage, charity too
Medical bills when they're more than a few
Below the line deductions, know the rules
Seven point five and ten thousand, these are your tools

[Verse 2]
State and local taxes, SALT's the name
Ten thousand cap since twenty-eighteen came
Property tax and income combined
But the limit keeps your savings confined
Thank the Tax Cuts and Jobs Act law
For putting that ceiling we all saw

[Chorus]
Below the line deductions, make your choice
Standard or itemized, let math be your voice
SALT and mortgage, charity too
Medical bills when they're more than a few
Below the line deductions, know the rules
Seven point five and ten thousand, these are your tools

[Verse 3]
Mortgage interest on your home so sweet
Seven fifty thousand debt limit you'll meet
Acquisition debt for buying your place
Home equity loans need different space
Used for home improvement, then you're fine
Otherwise it won't make the line

[Bridge]
Charity giving, open your heart
Fifty percent of AGI, that's the art
Get your receipt for two-fifty plus
Qualified distributions without a fuss
From your IRA direct to the cause
Tax-free giving within the laws

[Verse 4]
Medical bills pile up so high
Seven point five percent of AGI
Before you deduct, reach that floor
Then every dollar counts for more
Casualty losses, disasters declared
By the feds, or you're not prepared

[Outro]
Miscellaneous deductions took a break
Twenty-eighteen to twenty-five, for goodness sake
Employee expenses, tax prep fees
Suspended by TCJA's decrees
Below the line, now you know
Standard or itemized, watch your money grow

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