Irresistable Call to Action

With Milly child theme, you can create an unlimited number of popup overlays and display any Divi Builder section inside!

pexels olia danilevich 5466808 scaled 1

Tax Deductions You May Not Know About

by | Jan 16, 2021 | Tax Strategy | 0 comments

Tax season may be a couple months away still, however, it’s never a bad idea to get a head start. This year, if you are doing your own taxes, make sure you aren’t missing out on any potential tax deductions. Some of these are fairly common knowledge, however some of them may not be as well-known. Take a look at this list to see what you may be forgetting about, and check out our tax preparation and planning services if you decide you would like some additional assistance. 

Sales Tax

When filing your federal income taxes, keep in mind that if you are itemizing, you may have the option to deduct sales taxes on large purchases or your state income taxes. Itemizing may seem like additional effort, but in the long run, it could potentially put more money back in your pocket. 

Health Insurance

Most people are aware of the fact that your health insurance costs can be a tax break each year. However, deductible medical expenses that exceed 7.5% of your income can sometimes be claimed as a deduction on your itemized taxes as well. If you are self-employed and supply your own health insurance, you might have the option of deducting your entire cost from your adjusted gross income. 

Teaching Materials

If you are a teacher, you may be familiar with spending your own money on supplies for your classroom and curriculum. With this in mind, you may be able to deduct up to $250 from your AGI, whether you itemize your tax return or not. 

Charitable Giving

The majority of people realize that donations of money or goods given to charity or similar organizations can be deducted. What many people do not realize, however, is that out-of-pocket costs for any charitable contribution may also be deductible. 

Childcare Costs

While the cost of a babysitter for date night might not be a reasonable deduction, if you are paying for childcare while you are at working or looking for work, you may be able to deduct this. Be sure to note all of the identification information necessary for your childcare provider in order to have this deducted from your income, whether you have chosen to itemize or not. 

Continuing Education

Making payments towards student loans typically grants a deduction on your taxes, however, another grant called the Lifetime Learning credit may also provide some assistance for your taxes if you have chosen to further your education after high school. 

Unemployment

In some circumstances, the costs of being unemployed and searching for work may be considered a deduction on your taxes. Mileage, gas costs, ink for printing out your resume, all of these may fall into this category should you be eligible for this deduction. 

While you may not be eligible for all of these tax deductions, finding the ones that you can take advantage of can help to reduce how much you may owe or increase how much you receive in your refund. If you want to learn more about how to check your eligibility for these deductions, or want assistance planning for and filing your taxes, contact our team of experts today.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Related Articles

Understanding Tax Management to Keep More of Your Money

Understanding Tax Management to Keep More of Your Money

Understanding how to manage taxes is key to keeping more of your hard-earned money. Taxes are a part of life, but with the right strategies, you can minimize their impact on your finances. Smart tax management involves looking at your financial responsibilities and...

Explore Easy Ways to Lower Your Tax Bill This Year

Explore Easy Ways to Lower Your Tax Bill This Year

Managing taxes may feel overwhelming, but with some smart strategies, you can lower your tax bill and keep more money in your pocket this year. By understanding how various tax deductions and credits work, you can reduce the taxes you owe effectively. Simple...

Sign up for more tips!