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Deductions you can claim with standard (residents

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  • Deductions you can claim with standard (residents

    Today I learned that you can claim student loan interest as a deduction in addition to standard deduction. Are there any other things like this or would anything else be itemized and unlikely total the standard deduction and not be worthwhile for a resident?

  • #2
    unfortunately the student loan interest deduction is phased out for higher incomes.  Here's a list from wikipedia


    • #3
      Due to the fact that residents have a low enough income (especially if you have a kid and spouse) that they qualify for a lot of deductions and credits that you can't get as an attending.

      Remember, your "above the line" deductions are all available if you take the standard deduction. This includes:

      HSA, FSA (including childcare), 401k/403b, IRA, student loan interest, moving expenses, childcare deduction, child tax credit, and tuition deduction/credit depending on your circumstances.

      My wife and I were able to take advantage of most of those to great effect. Made a several thousand dollar difference in our taxes owed due to claiming everything that the rules said we qualified for.

      Hope that helps! When in doubt go read and then ask questions here.


      • #4
        Well, I was going to answer but @FutureDoc already claimed this, good info. This post discussing the difference in "above-the-line" and "below-the-line' might be helpful for now and for when you are in a higher bracket: How to Manipulate Your AGI to Lower Taxes
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


        • #5
          there are lots of things like that. always good to learn about the tax code you will be working with. it might not be the most .... exciting read. but when it starts helping you out, it can be!


          • #6
            That's the difference between an "adjustment," aka "above the line," and simply a "deduction."

            Adjustments lower AGI; deductions just reduce taxable income.  Hence paying your student loan interest can even lower your income-driven student loan payments due.  Here's the IRS's guidance:

            These should be addressed one-by-one from going through your average DIY tax software.


            • #7
              You're looking for above the line deductions. The main ones a resident would qualify for is a business expense if they're moonlighting, a SEP-IRA or solo 401(k) contribution if they're moonlighting, and student loan interest (deductible to most residents but not most attendings.)

              Maybe some tuition and fees for your last semester of MS4. Maybe some alimony. Read through the list and see if you qualify for any of them. They're lines 23-35 on Form 1040.

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