Florida and Taxes

Florida is one of the most tax-friendly states in the U.S., thanks to its lack of a state income tax. While this might lighten your tax burden, many individuals are unaware of the federal tax deductions and credits they’re eligible to claim. Knowing what you qualify for is essential to ensuring you don’t overpay.

Why Understanding Deductions Matters

• Maximizes Savings: Deductions lower taxable income, meaning you keep more money.
• Simplifies Filing: Identifying applicable deductions increases filing accuracy.
• Protects You Legally: Knowing the rules ensures compliance with IRS regulations.

If you’re not sure where to begin, working with a tax preparation services in Miami like Sela Tax can provide the clarity you need.

Common Tax Deductions for Florida Residents

Below are the top deductions individuals in Florida should consider when filing their tax returns:



1. Mortgage Interest Deduction

If you own a home in Florida, you may qualify for a significant deduction on your federal taxes in the form of mortgage interest. This is particularly useful for those with recently purchased properties or high-interest mortgages.

• Applies to primary and secondary residences.
• Capped at $750,000 for married couples filing jointly (or $375,000 for single filers).
• Tip: Save all Form 1098s issued by your lender as proof.

2. Property Tax Deduction

Property taxes, while inevitable for homeowners, are deductible on your federal tax return. The IRS allows you to claim up to $10,000 (or $5,000 if married filing separately) annually under the State and Local Tax (SALT) deduction.

3. Medical and Dental Expenses

Expenses for medical and dental care that exceed 7.5% of your adjusted gross income (AGI) can be deductible. This includes:

• Doctor and hospital visits.
• Prescription medications.
• Health insurance premiums (if paid out of pocket).

Keep all receipts and records to substantiate these claims.

4. Charitable Contributions

Floridians who donate to 501(c)(3) organizations, whether with cash, property, or even non-cash items like clothing, qualify for deductions.

• Ensure documentation includes the charity’s name, donation date, and value.
• Up to 60% of your AGI can be deducted for cash donations.

5. Retirement Contributions

Contributing to tax-advantaged retirement accounts, such as Traditional IRAs, lowers your taxable income.

• Cap for IRA contributions in 2023 is $6,500 (or $7,500 if you’re 50 or older).
• Employer-sponsored plans like 401(k)s exclude contributions from taxable income upfront.

Taking advantage of these deductions not only future-proofs your finances but also trims your current tax bill.

6. Education-Related Deductions

Florida residents pursuing higher education or repaying student loans can benefit from:

• Student Loan Interest Deduction (up to $2,500 annually).
• Tuition and Fees Deduction for qualifying institutions.

Additionally, educator expenses (up to $300 per tax year) are deductible for teachers purchasing classroom supplies.

7. Energy-Efficient Home Improvements

If you’ve made significant eco-friendly upgrades to your home, like installing solar panels or energy-efficient windows, you may qualify for federal credits like the Residential Clean Energy Property Credit. This can offset 30% of your costs.

8. Self-Employment Deductions

Freelancers, consultants, and small business owners in Florida have a wealth of deductions available, including:

• Home office expenses.
• Vehicle mileage (if used for business purposes).
• Internet and utilities (business use percentage).
• Health insurance premiums for self-employed individuals.

9. Investment Interest Deductions

If you’ve taken loans to finance income-generating investments, the interest paid on these loans may be deducted, subject to certain limits.

10. Moving Expense Deduction (Military Only)

For active-duty military personnel relocating due to a permanent change of station, certain moving-related costs are deductible—even without itemizing.

Why Work With a Professional Service

Identifying and claiming all applicable deductions requires expertise. This is where Sela Tax makes a significant difference:

• Expert Guidance: With over 10 years of experience, Sela Tax provides personalized advice tailored to your financial situation.
• Maximized Deductions: Their seasoned team ensures you don’t miss out on valuable tax-saving opportunities.
• Stress-Free Filing: From organizing documents to submitting returns, Sela Tax simplifies the entire process.

Their individual tax preparation services have helped thousands of Florida residents achieve peace of mind while maximizing their tax refunds.

Tips to Prepare for Filing

Organize Your Documents:

Have all necessary forms, including W-2s, 1099s, and receipts for deductions, ready.



 Track Expenses Early:

Keeping a detailed record simplifies year-end reporting.

 Stay Updated:

IRS rules and deductions frequently change. Staying informed ensures compliance and reduces errors.

Partner With an Expert:

A trusted advisor like Sela Tax can keep your finances on track and help you avoid costly mistakes.

Work With the Best Tax Firm in Florida

Whether you're a first-time filer or a seasoned taxpayer, understanding deductions is key to maximizing your refund and avoiding overpayments. Florida residents can benefit significantly from staying informed and taking a proactive approach to their finances.



If you’re feeling uncertain or overwhelmed, Sela Tax is here to help! With affordable, professional services tailored to both individuals and businesses, we ensure your deductions are maximized and your filing is stress-free.

Contact Sela Tax today or schedule your free consultation to get started. Your financial future is in good hands.