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1. Which personal expenses are deductible and how much may be deducted? 2. How are personal...

1. Which personal expenses are deductible and how much may be deducted?

2. How are personal these personal expenses classified: For AGI or From AGI

3. What tax schedule are the personal expenses reported on?
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Answer #1

1) Here are some of the personal expenses that you can deduct from the total income (for tax purpose), are.

- Life insurance premium

- Children's Tution fee

- Interest on Housing Loan

- Any Savings in authorized schemes

.....etc.,

Up to 150,000 for AY 2018-19 as per Sec 80C.

- Medical Insrance premium

Up to 25,000 & 30,000 (for senior citizens) as per Sec 80D

- Presemtive Health check up

Up to 5000 (allowed even used cash mode also) as per Sec 80D

- Rent Paid

Up to 60,000 (subject to conditions) as per Sec 80GG

- Donations

Up to 100% or 50% (subject to conditions) as per Sec 80G

...etc.,

2) Deduction for AGI, these expenses are subtracted from gross income to get AGI (above the line deductions)

Itemized deductions are deducted from AGI.

3) Personal expenses are allowed itemized deduction includes medical expenses, local taxes, interests and rent paid on schedule A.

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