When it comes to filing taxes, many people overlook valuable deductions that could significantly reduce their tax burden. Here are eight commonly missed deductions you should consider:
- State Sales Tax: If you live in a state without income tax, you can deduct state and local sales taxes instead. This is especially beneficial if you made large purchases during the year.
- Charitable Contributions: Don’t forget about small donations or out-of-pocket expenses for volunteer work. Even mileage driven for charity can be deducted at $0.14 per mile.
- Student Loan Interest: You can deduct up to $2,500 of student loan interest paid, even if you don’t itemize deductions.
- Job Search Expenses: If you’re looking for a job in your current field, expenses like travel costs and resume preparation may be deductible.
- Moving Expenses for Military: Active duty military members can deduct unreimbursed moving expenses for a permanent change of station.
- Energy-Efficient Home Improvements: Installing solar panels or other energy-efficient upgrades can qualify you for tax credits.
- Medical Expenses: If your medical expenses exceed 7.5% of your adjusted gross income, you can deduct the amount over this threshold.
- Self-Employed Health Insurance: If you’re self-employed, you can deduct 100% of your health insurance premiums.
It’s important to keep detailed records and receipts throughout the year to maximize your deductions. If you’ve missed deductions in previous years, Accotax late tax filing services can help you file amended returns and potentially recover overlooked tax savings.
Remember, tax laws change frequently, so it’s wise to consult with a tax professional to ensure you’re taking advantage of all available deductions. They can also help you navigate complex tax situations and avoid costly mistakes.
By thoroughly reviewing these often-overlooked deductions, you may find opportunities to reduce your tax liability and keep more money in your pocket. Don’t leave money on the table – take the time to explore all potential deductions before filing your taxes.
