The 10 Big Tax Deductions Everybody Misses
Tax-deductions are an important part of keeping as much of your earned money for yourself, rather than giving it to the IRS. Many of these deductions may be small, but they do add up, and can really help out at tax time.
If you’re reading this you may be one of the many that haven’t yet learned about the 10 big tax deductions that will save your bank account – and your sanity – come April 15th. Because we believe in helping you achieve the best outcome when dealing with the IRS, we’ve put together a list of the 10 secrets to saving money this tax year.
1. Make charitable non-cash contributions, such as donating clothing, furniture or other objects to places like Goodwill and Salvation Army. Be sure to get written receipts for everything you contribute.
2. Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan.
3. Don’t forget to use the old points you paid to refinance your home in conjunction with the new points when you refinance it again. This is a deduction that many people miss.
4. Health insurance premiums are potentially deductible, but they must be added to your medical expense pot, which has to exceed 7.5% of your adjusted gross income before it can be considered for tax deductions.
5. Educator expenses apply to all educators who use their own money to buy resources and materials for their students.
6. If you make less than $65,000 and went to college or obtained some kind of higher education, you qualify for an above-the-line-deduction for as much as $4000 paid towards higher education expenses.
7. If you make any energy saving home improvements, you qualify for a deduction.
8. Any expenses related to tax-planning are deductible, so long as they exceed 2% of your adjusted gross income.
9. If the President declared the area in which you live a “disaster area” during the tax year, then you qualify for Causality Deductions.
10. Take advantage of the Retirement Tax Credit if you’re a moderate- to low-income earner. Any money you add to your retirement account isn’t taxed unless you use it before the allowed time.
Visit us at http://www.irsallstar.com/our-services#13 to see how we can help you save money and stop stressing about your taxes today.