What Are Commonly Missed Tax Deductions
Missing tax deductions is a common mistake that can cost taxpayers a lot of money. In fact, the average tax refund is over $2,000. That's a lot of money that can be saved by taking advantage of all the tax deductions available.There are a number of commonly missed tax deductions, including the following:
1. Home office deduction. If you use a part of your home for business purposes, you may be able to deduct a portion of your mortgage interest, property taxes, and home insurance.
2. Charitable contributions. Contributions to qualified charities are generally tax deductible.
3. Medical expenses. If you have medical expenses that exceed 10 percent of your Adjusted Gross Income (AGI), you may be able to deduct those expenses.
4. State and local taxes. You may be able to deduct state and local income taxes or sales taxes.
5. Educator expenses. If you are a teacher, you may be able to deduct up to $250 of expenses paid for professional development courses.
6. Job-hunting expenses. If you are looking for a new job, you may be able to deduct associated expenses, such as travel, resume printing, and job search websites.
7. Moving expenses. If you move for a new job, you may be able to deduct moving expenses, such as transportation, lodging, and meals.
8. Retirement contributions. Contributions to a traditional IRA or employer-sponsored retirement plan are generally tax deductible.
9. Homebuyer credits. If you purchased a home in 2009 or 2010, you may be able to claim the homebuyer credit.
10. Energy-saving home improvements. If you made energy-saving home improvements in 2009 or 2010, you may be able to claim a tax credit.
1. Charitable Donations
There are many different ways to give back to your community and support charitable organizations. One way that is becoming increasingly popular is through online giving. This is when people make donations to charities through their computer or mobile device.There are a number of benefits to online giving. First, it is easy and convenient. You can make a donation from anywhere at any time. Second, online giving is secure. Your personal information is protected and will not be shared with any third-party organizations. Third, online giving is tax deductible. Your donation can be written off on your taxes, which can help reduce your tax bill.
If you are looking to make a charitable donation, online giving is a great option. There are a number of reputable websites that allow you to make donations to a variety of charities. Be sure to do your research before choosing a site to make sure that your money is going to a reputable organization.
Online giving is a great way to support your community and charitable organizations. It is easy, convenient, and secure. Plus, it can help reduce your tax bill. If you are looking for a way to give back, online giving is a great option.
2. Points on Refinancing
Are you in the market for a new mortgage? If so, you may want to consider refinancing. Refinancing can be a great way to get a lower interest rate, lower your monthly payments, or both.Here are a few things to keep in mind when refinancing:
1. Check your credit score. Your credit score will play a role in determining your interest rate. If your score is not as high as you would like it to be, you may want to wait until you have a chance to improve it before refinancing.
2. Consider your current mortgage. If you have an adjustable-rate mortgage, or an ARM, refinancing may not be a good idea. ARMs are subject to rising interest rates, so you may not be able to get a lower interest rate by refinancing.
3. Calculate your break-even point. The break-even point is the point at which refinancing makes financial sense. You need to make sure you will save enough money on your monthly payments to make refinancing worth it.
4. Weigh the costs of refinancing. There are typically costs associated with refinancing, such as closing costs and mortgage points. Make sure you are able to afford these costs before refinancing.
Refinancing can be a great way to get a lower interest rate, lower your monthly payments, or both. If you are considering refinancing, be sure to weigh the costs and benefits carefully.
3. Job Related Expenses
It's tax season again and that means it's time to start thinking about all of the expenses you incurred last year while working. If you're like most people, you probably have a few questions about what job-related expenses you can deduct on your tax return. Here are a few of the most common questions and answers:Q: What are job-related expenses?
A: Job-related expenses are costs you incur while working that are not reimbursed by your employer. This includes things like transportation costs, job-hunting expenses, and professional dues.
Q: What can I deduct?
A: There are a number of job-related expenses that you may be able to deduct on your tax return. The most common include transportation costs, job-hunting expenses, business-related meals and entertainment, and professional dues.
Q: How do I deduct job-related expenses?
A: You can deduct job-related expenses by either itemizing them on your tax return or taking a standard deduction. If you choose to itemize, you will need to report each expense separately. If you take the standard deduction, you can combine all of your job-related expenses into a single deduction.
Q: Are there any restrictions?
A: Yes, there are a few restrictions on the types of job-related expenses you can deduct. For example, you cannot deduct the cost of commuting to and from work, and you can only deduct business-related meals and entertainment expenses if they were not lavish or excessive.
If you have any other questions about job-related expenses, be sure to consult with a tax professional. They can help you determine which expenses you are eligible to deduct and help you file your tax return.
4. Higher Education Expenses
In the United States, the cost of a college education is rising faster than the rate of inflation. According to the College Board, the average cost of tuition and fees for the 2016-2017 school year was $33,480 at private colleges and $9,650 for public colleges.While there are many scholarships and grants available to help offset the cost of college, most students still have to borrow money to pay for school. And, with student loan debt now totaling more than $1.3 trillion, it's important to understand all of your financing options.
Here are a few tips to help you pay for college:
1. Start saving as early as possible.
The sooner you start saving for college, the more money you'll have available. You can open a college savings account, or you can invest in a mutual fund or stock portfolio that will provide you with a steady stream of income.
2. Take advantage of government assistance programs.
The government offers a variety of assistance programs to help students pay for college. The most popular program is the Pell Grant, which provides up to $5,920 per year to students who demonstrate financial need.
3. Apply for student loans.
If you need more money to pay for college, you can apply for a student loan. There are a variety of student loan programs available, including government loans and private loans. Be sure to shop around for the best interest rates and terms. If you are considering an online loan with no credit check, be sure to check out iPaydayLoans.
4. Work part-time while in school.
Working part-time while in school can help you cover some of your expenses. You can find part-time jobs on campus or off campus.
5. Take advantage of tuition discounts.
Many colleges and universities offer discounts on tuition to students who belong to certain groups, such as alumni or members of the military. Be sure to ask about any discounts that may be available to you.
Paying for college can be a challenge, but with a little planning and effort, you can find a way to make it work.
