13 Tax Deductions You Probably Don’t Know About
This post may contain affiliate links.
Tax season can be a stressful time for many people. With the pressure of filing correctly and maximizing returns, it is easy to overlook valuable deductions. Understanding these deductions can lead to significant savings and less stress when tax day arrives.
This article features 13 tax deductions that you probably don’t know about.
Charitable Donations
Many people know that donating to charities can be tax-deductible, but they may not realize the extent of these deductions. In addition to monetary donations, clothing, furniture, and household goods donated to qualified organizations can also be deducted. To maximize this deduction, keep track of all charitable contributions throughout the year.
Job Search Expenses
If you are currently employed and are looking for a new job, you may be able to deduct certain expenses related to your job search. These deductions include fees for resume writing services, printing and mailing resumes, and traveling to interviews. Keep all receipts and track these expenses carefully to take advantage of this deduction.
State Sales Tax
If you live in a state that does not have an income tax, you can choose to deduct either state income tax or state sales tax on your federal return. For those who made large purchases throughout the year, such as a car or boat, choosing the state sales tax deduction may result in more significant savings.
Moving Expenses
If you moved due to a job change that required you to relocate more than 50 miles away, you may be able to deduct your moving expenses. This deduction includes the cost of packing and transporting your belongings, as well as travel expenses for yourself and family members.
Home Office Deduction
You may be eligible for the home office deduction if you work from home or have a dedicated space for business activities. This eligibility allows you to deduct a portion of your home’s expenses, such as rent, utilities, and insurance, based on the percentage of your home used for business purposes.
Educator Expenses
Teachers and other educators can deduct up to $250 for classroom materials purchased out of pocket. These materials must be used in the classroom and not reimbursed by their school or district. This deduction can benefit those who spend their money on supplies for their students.
Health Savings Account Contributions
Contributions to a Health Savings Account (HSA) are tax-deductible up to certain limits. These contributions can lower your taxable income and provide long-term tax benefits when used for qualified medical expenses.
Student Loan Interest
If you are paying off student loans, you can deduct the interest paid on those loans up to $2,500 per tax return per year. This deduction is available even if you do not itemize your deductions, making it accessible to many taxpayers.
Moving Expenses for Military Members
Active-duty military members who are moving due to a permanent change of station can deduct their moving expenses even if they do not meet the 50-mile distance requirement from their previous home. This deduction includes both household goods and travel expenses.
Alimony Payments
For those who have gotten divorced and pay alimony, it is essential to know that these payments are tax-deductible. This deduction applies for both court-ordered alimony and voluntary payments made by agreement between ex-spouses.
Energy-Efficient Home Improvements
Home improvements that increase energy efficiency, such as installing solar panels or upgrading insulation, can qualify for tax credits. These credits can translate into significant tax deductions while reducing energy bills. Be sure to keep all receipts and documentation for these improvements.
Mortgage Interest on a Second Home
The mortgage interest deduction is well-known, but many people do not realize it applies to a second home. This property can be a vacation home or rental property, leading to significant tax savings for those who own multiple properties.
Investment-related Expenses
Investment expenses, such as fees for financial advisors or stockbrokers, are tax-deductible. This deduction applies to taxable and retirement accounts like IRAs and 401(k)s. Track these expenses throughout the year to maximize this deduction.
10 Big Things Non-Americans Believe All Americans Have in Their Homes
Having the perspective of someone on the outside looking in can make you rethink what you’re accustomed to every day. This can be as simple as your specific life to the lives of a country as a whole. People who don’t live in America share their thoughts on what every American has in their homes on an online forum. Whether these ten items are genuinely in every household in the US is up to you to decide.
10 Big Things Non-Americans Believe All Americans Have In Their Homes
10 Popular Places in the US That Have Tent Cities Today
The US is dubbed the land of opportunity and abundance, but not everyone has a roof over their head. While the number of homeless people has increased in the last decade, tent cities are a growing reality, especially in larger states, a sobering reminder of the deep-seated issues of homelessness, poverty, and lack of affordable housing in the US.
10 Popular Places in The US That Have Tent Cities Today
Airbnb Must-Haves: Insights From a Well-Traveled Airbnb Guest
Drawing from our experiences, this article offers valuable insights and tips to help hosts create an unforgettable Airbnb experience. Let’s delve into the Airbnb essentials and must-haves that will delight guests.
Airbnb Must-Haves: Insights From a Well-Traveled Airbnb Guest
18 of the Most Dangerous Small Towns in America
The truth about the most dangerous towns in America is surprising. They differ from the towns you would expect or where you think they should be.
