Top 10 Overlooked Tax-Deductible Opportunities
As if life isn't expensive enough as it is, the government has an overpowering tendency to snag money right out of our paychecks for themselves. Nevertheless, it's our duty as a citizen to abide by the law and pay these expenses. But as a taxpaying citizen, it's also important to be aware of the different ways that we can earn that money back.
The government may act in ways that many people find unfair, but they mean well and try to offer a variety of different tax-deductible opportunities for those who contribute to our society, or are decent people who could use a little financial break.
Too many people overlook these opportunities, and lose their chances of getting a chunk of that money back in their pockets. The following is a list of the top ten tax-deductible opportunities you need to know about. Chances are, you probably qualify for a few.
1. State Sales Tax
State sales tax deductions, although they were allowed to expire in 2012, are now restored and retroactive--meaning you may reform your sales tax deductions for last year, in addition to this year's deduction.
2. Student Loan Interest
Even if your parents paid some of your student loans, you may still qualify for this deduction. If you claimed as an independent, the loan is under your name, and you are legally required to pay it back, you may qualify for up to $2,500 in tax deductions.
3. Medical Expenses
If your medical expenses exceeded 7.5% of your adjusted gross income, you are able to write them off as an itemized tax deduction. Even if someone else helped you pay them.
4. Child Care
There are a few different ways you can get financial assistance for childcare. Your employer may offer a reimbursement opportunity, which might be a better deal than a tax break. If not, you have a couple different possibilities: a deduction or a credit. A tax credit might be an even better option than a deduction because they reduce the amount of taxes you have to pay regularly.
5. Job Hunting
If you're one of the millions of Americans who had a hard time finding a job this year, and ended up spending money during the process on things such as employment agencies, traveling, printing, mailing, or advertising, you may qualify for a tax deduction.
6. Career Travel
If you had to travel a long distance for a new job, or for a job in which your travel was not paid for, such as freelance work, you may qualify for this deduction as well.
7. Military Travel
For long-distance military travel that you had to pay for yourself, such as for meetings or drills, the expenses associated with that is also tax-deductible.
8. Energy-Efficient Home Improvement
Energy saving home improvements can be costly; however, they are beneficial to the environment, so the government offers tax credits for them. The amount of the tax credit is dependent on the type of improvement you are doing.
9. Financial Advice
Certain financial assistance expenses, such as receiving investment planning advice from a professional, is also tax-deductible because it is seen as beneficial to our economy.
10. Charity Contributions
Gifts or charitable contributions to qualifying organizations are additional tax-deductible opportunities and are quite often overlooked. Goodwill, The Salvation Army, Big Brothers and Sisters of America, and Locks of Love donations, to name a few, are all eligible for this deduction, as long as receipts or other proof are provided.
Many of these tax-deductible opportunities have certain qualifications and restrictions, so it is important to have an experienced and trustworthy tax preparer [http://www.lbstax.com/tax-preparation.html] to help inform you on the different details of each deduction opportunity. Good luck!
The government may act in ways that many people find unfair, but they mean well and try to offer a variety of different tax-deductible opportunities for those who contribute to our society, or are decent people who could use a little financial break.
Too many people overlook these opportunities, and lose their chances of getting a chunk of that money back in their pockets. The following is a list of the top ten tax-deductible opportunities you need to know about. Chances are, you probably qualify for a few.
1. State Sales Tax
State sales tax deductions, although they were allowed to expire in 2012, are now restored and retroactive--meaning you may reform your sales tax deductions for last year, in addition to this year's deduction.
2. Student Loan Interest
Even if your parents paid some of your student loans, you may still qualify for this deduction. If you claimed as an independent, the loan is under your name, and you are legally required to pay it back, you may qualify for up to $2,500 in tax deductions.
3. Medical Expenses
If your medical expenses exceeded 7.5% of your adjusted gross income, you are able to write them off as an itemized tax deduction. Even if someone else helped you pay them.
4. Child Care
There are a few different ways you can get financial assistance for childcare. Your employer may offer a reimbursement opportunity, which might be a better deal than a tax break. If not, you have a couple different possibilities: a deduction or a credit. A tax credit might be an even better option than a deduction because they reduce the amount of taxes you have to pay regularly.
5. Job Hunting
If you're one of the millions of Americans who had a hard time finding a job this year, and ended up spending money during the process on things such as employment agencies, traveling, printing, mailing, or advertising, you may qualify for a tax deduction.
6. Career Travel
If you had to travel a long distance for a new job, or for a job in which your travel was not paid for, such as freelance work, you may qualify for this deduction as well.
7. Military Travel
For long-distance military travel that you had to pay for yourself, such as for meetings or drills, the expenses associated with that is also tax-deductible.
8. Energy-Efficient Home Improvement
Energy saving home improvements can be costly; however, they are beneficial to the environment, so the government offers tax credits for them. The amount of the tax credit is dependent on the type of improvement you are doing.
9. Financial Advice
Certain financial assistance expenses, such as receiving investment planning advice from a professional, is also tax-deductible because it is seen as beneficial to our economy.
10. Charity Contributions
Gifts or charitable contributions to qualifying organizations are additional tax-deductible opportunities and are quite often overlooked. Goodwill, The Salvation Army, Big Brothers and Sisters of America, and Locks of Love donations, to name a few, are all eligible for this deduction, as long as receipts or other proof are provided.
Many of these tax-deductible opportunities have certain qualifications and restrictions, so it is important to have an experienced and trustworthy tax preparer [http://www.lbstax.com/tax-preparation.html] to help inform you on the different details of each deduction opportunity. Good luck!
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