Here Is What You’re Missing Out On Regarding Your Tax Breaks!
When tax season rolls around, everyone begins organizing their finances and digging around for whatever tax deductions they may be applicable for. Writing off your qualifying credit is satisfying and the rebates are rewarding if you know what you’re doing. Here, we will go over a few of the tax deductions that are often overlooked or not very well known, so that the next time you’re pulling together your taxes, you can explore even more deductions!
If you were recently on the hunt for a job, it is likely that you had to invest a considerable sum of money towards recruitment agency fees or even the administration charges of getting your CV around. So many people who go on their job hunts have no idea that their expenses are tax-deductible. Specific job search expenses can definitely be deducted, so long as the applicable rules are followed.
Pet Moving Expenses
Did you know that you can get a tax break for moving your pet? Relocation costs of your pet, or pets, are actually tax-deductible expenses. As long as your move meets the requirements of the IRS, you could likely deduct the cost of shipping your beloved dog, cat, or whatever else qualifies!
As a self-employed taxpayer, you may not be able to take advantage of the payroll tax deductions that are applicable to employees, but there are benefits for you, too! You are open to taking advantage of the tax breaks applicable to a small business. For example, if you happen to work from home, then a part of your mortgage or your rent can be tax-deductible as it is a place of business. The same goes for your utility bills, maintenance, and related expenses.
In the event of you being responsible for the payment of the care of a qualifying dependent, even a child so that you and/or your significant other can go out and work, there may be a chance that you qualify for credit for the cost of care. Tax credits are, in a way, better than tax deductions, because they directly reduce your taxes and don’t just reduce your taxable income.
Smoking Cessation Program
If you’ve joined a program to help you kick your puffing habit, then you just might be eligible for a medical tax deduction! Who knew! This can even extend to tax deductions for the prescription medication you may require in order to ease the effects of nicotine withdrawal.
If you’ve joined a qualifying weight loss program, you can actually look forward to tax deductions for participating. But you have to meet the requirements and also prove that your weight loss is intended for fighting off of a specific weight-related disease that has been diagnosed by a licensed physician.
In the event of you going out on a volunteering vacation, where you intend to help out an organization or to be of service to charitable groups, you may qualify to claim for the deduction of your travel costs. This is a tricky one though because it is quite clear that there should be no great enjoyment or pleasure that you obtain from the trip and that the trip is devoid of leisure and recreational activities or facilities. You are expected to only claim for truly charity-related trips where you are charitable throughout the trip!
Pregnancy & Baby Related Costs
If you’ve recently paid for a pregnancy test and check-ups, purchased equipment, or stocked up on any supplies for your baby, you can likely be able to claim a portion of your expense as medical expenses. If you invested in high-end products, then this is a significant return. The IRS will deduct only a part of these costs on your income taxes and only if you itemize the deductions.
If you are a student or a parent of a student and if you have student loan debt, the interest payable on that loan is tax-deductible and the qualifying amount will reflect on your tax return. There is a limit on how much you can deduct per year, though. You will only be eligible on certain grounds – for example, your deduction may be either limited or eliminated if you have a job with significant income.
Armed with the knowledge of these lesser-known tax deductions and tax credits, you can now tackle the tax season with confidence and make sure that you squeeze every penny you can out of the process! After all, who wouldn’t enjoy a higher tax return!
More in Financial Advice
Consider Using Time Tracking Software In Your Business
Businesses use time tracking software to maintain accurate records of the length of time it takes for workplace activities to be...July 10, 2020
Fun Jobs You Can Do from Home To Earn Money and Fame
Do people feel clueless whenever they think about leaving their day jobs? Would you like to start working as an independent? People do not always...July 9, 2020
Leonardo da Vinci’s “Codex Leicester” and Four of the Most Expensive Books in the World
As eloquently stated by horror fiction writer Stephen King, “Books are a uniquely portable magic.” Readers can attest to the fact that this...July 8, 2020
These Are the Money Habits Holding You Back From Financial Freedom
Unless you’re a celebrity or a lottery winner, you have a limited amount of money to spend every month. We all...July 7, 2020
Hydrogen Power May Be Tomorrow’s Answer To Today’s Environmental Concerns
Hydrogen technology is a developing area. However, the United Kingdom is the one leading the research in this direction. The UK...July 6, 2020
Do You Have What It Takes to Make a Great Business?
Maybe you have a fabulous idea that could earn you a fortune, but do you know that it takes more than...July 3, 2020
Five Easy and Simple Ways to Save Water at Home
Water is one of the most precious natural resources that is turning scarce with every passing day. However, the irony is...July 2, 2020
The Complicated Link Between Money and Health
New research has uncovered links between wealth and lifespan. This brings more truth to the iconic catchphrase ‘live long and prosper’...July 1, 2020
Are You a Small Business Owner? Here’s How You Can Find Work-Life Balance
As a small business owner, it is exciting to fuel all your energy into building your dream. However, more often than...June 30, 2020