Tax deductions reduce the amount of your taxable income. Before filing your return, check to see whether the standard deductions or itemizing your deductions is most beneficial to your situation. Millions of taxpayers overpay their taxes every year by just overlooking one item. Claim all the tax write-offs you deserve and cut your tax bill down to the bone.
1. Tuition & Fees Deduction
Taxpayers working towards a degree may take benefits from the American Opportunity Tax Credit for college education. You may deduct up to $4000 for tuition, fees, books and educational supplies for yourself, your spouse and any dependents.
2. State & Local Sales Tax Deduction
Residents of states without state income tax can deduct sales tax pain on purchases. Even f you live in a state with state in come tax, you can benefit from paying large-purchase sales taxes.
3. Charitable Contributions
Donations may be deductible and get you a bigger refund.
4. Earned Income Tax Credit
This can be worth up to $6,044 depending on your income and number of dependents – it’s geared to filers who earn low to moderate income. The IRS says one in five filers overlook this opportunity.
5. Job Search Fees
Costs related to job-searching may be deductible, whether you got the job or not. Preparing and sending resumes, placement agency fees, and even travel for searches can save you money on taxes.
6. Retirement Saver’s Credit
If you have an income up to $29,500 ($59,000 for married filing jointly). You can save for retirement and get a tax credit for up to $1,000 for individuals and $2,000 for couples, if you contributed to a qualifying retirement plan such as an IRA of 401(k). This is in addition to actual IRA contributions, which may also be a deduction from your income.
7. Gambling Losses
If you weren’t so lucky gambling last year, losses may be deducted if you itemize your deductions. Losses cannot surpass your winnings, and any winnings must be reported as taxable income. You must have documentation to support your losses.
If you have questions about which deductions might lower your tax debt, or for any assistance at all regarding any kind of tax liability situation, call us for help. Contact the Florida offices of TaxProblemSolver.com today at 727-894-2099 or 407-629-5923. Or you can email me, Larry Heinkel at larry@taxproblemsolver.com. Our team of IRS Enrolled Agents (EAs), Tax Resolution Attorney and CPA helps taxpayers NATIONWIDE and we’re here to provide quality assistance to your most important tax issues.
