Tax DeductionsDon’t shortchange yourself by taking the easy way out. Many people overpay when they file taxes and don’t get as much back as they should because they aren’t familiar with the tax deductions they can take advantage of. About 46 million Americans take advantage of their 1040s and itemize deductions—to the tune of nearly one trillion dollars. Another eighty-five million claimed over half a trillion dollars in standard deductions. Make sure that you get the deductions that can put money into your pocket—it is completely legal, and in this economy, it doesn’t make sense to leave behind even one dollar. Here are a few deductions that you can take advantage of this year. State sales taxes are tax deductible, and if you live in a state that doesn’t impose an income tax this deduction can be particularly beneficial. Any out-of-pocket charitable donations and contributions can save you some this year, and if you drove for charity don’t forget to include the mileage. Medical expenses including health insurance premiums, prescription eyeglasses and contacts, hearing aids, and nursing home expenses are also tax deductible. Any out-of-pocket job expenses that are not reimbursed are a great tax deduction, and you can even deduct the interest your mom and dad paid on your student loans up to twenty-five hundred dollars. For post graduates, you can ride-off any moving expenses you pay to take your first job. Make sure you don’t miss out on the child-care credit since it reduces your tax bill dollar for dollar. Missing this deduction is if you are eligible will definitely hurt how you come out. These are just a few of the tax deductions that can save you money this tax season. |
