Want a Bigger Tax Refund? Here Are 5 Things You’re Forgetting to Deduct
Nothing is more painful than realizing you forgot to include deductions towards your tax refund.
This is money that is rightfully owed to you, and often overlooked if the proper care isn’t being put towards filing your taxes. From magazines to medical insurance premiums, it’s time to get out ahead of your taxes for the biggest tax refund possible this year.
Here are 5 things you are most likely forgetting to deduct at tax time:
Sure, you probably know that charitable contributions are deductible. That’s the easy part. Did you know you could deduct the work you do for charity, too? Things like transportation to a charitable event or a fundraiser can be deducted from your tax total. Any cost associated with participating at these events is a legal and recognized deduction on your tax return.
2. Home Office:
If you’re self-employed, you are eligible for a variety of tax deductions that are not available for other workers. For instance, you can deduct a portion of the cost of utilities or even rent for your home office. Plus, you can deduct for magazine subscriptions or other member organizations in your career field that is helping you with the development and inspiration behind the business.
3. Health Help:
Yes, you can deduct the cost of medical insurance premiums that surpass 10 percent of your adjusted gross income. Even if you are covered in an employer plan, this deduction still applies to you. Additionally, if you are self-employed, the 10 percent threshold is waived for you, enabling you to deduct the costs of any kind of insurance premium.
4. Teacher Support:
If you’re a teacher or some kind of educator, you can deduct for materials that were bought for the classroom. This above-the-line deduction is a special kind of treat, ensuring you don’t need to itemize each item for this kind of deduction submission.
5. Parental Perks:
Parents who work and leave their children with caregivers are eligible for a tax credit that will offset the cost of baby sitters, day care, nursery schools or pre-schools. There are some limits, however, including the age of the child and the percentage of the credit. If you’re a parent, don’t assume that you need to front all of these costs and associated taxes alone.
Don’t forget: if you’re making a move for your job, you can also deduct what you spend on packing and moving your belongings, as well as for storage, insurance, transportation, and lodging associated with the move. Plus, there’s always disaster recovery related costs, as well as loan points earned on mortgage refinancing.
If you’re about to do your taxes for the fiscal year, do not accept the taxable income amount left at the end of the process. There are dozens of deductions that aren’t commonly known or talked about today.
Do your due diligence to make sure you are getting back all of your hard-earned money.