Filing your taxes doesn’t have to be a dreadful experience. With today’s abundance of online tax-filing services, finding new and “hidden” deductions is becoming easier and easier. Whether you’re filing online or filing by hand, there are several “hidden” tax deductions that may raise the amount of money you get back after filing.
1. Educational Expenses.
While many people are aware that you can write off tuition, most don’t realize that you can also write off other educational expenses, such as textbooks. If you have required textbooks for a class that you purchase, be sure to save the receipts in order to mark it off your tax return.
Whether it’s a full-time daycare or a part-time babysitter, you can deduct the expense of paying someone to care for your child from your taxes.
3. Medical Expenses.
If you paid for medical care during the previous year, you may write off certain medical expenses.
If you are employed by a company that requires you to wear a uniform, the purchase of your uniform qualifies as a business-related expense.
Any time you donate to a charity or non-profit, whether it’s money or a clothing donation to Goodwill, make sure you get a receipt. Charitable donations are deductible for up to 50% of your income. If you donate more than 50% of your income to charity, the remainder of the deduction will carry over to the next year.
6. Student Loan Interest.
Up to $2,500 of student loan interest is deductible each year that you file.
7. Business Application Expenses.
Business expenses are deductible, which isn’t a secret. What IS a secret is that many every-day activities qualify for this deduction. Resume paper, resume envelopes, and printer ink are just a few of the items that meet this requirement.
These are just a few of the little-known tax deductions that are available this year, but there are over 350 deductions available! One of the best ways to make sure you get the most out of your taxes is by filing online or hiring someone to help you file. He or she will be able to make sure that you get as much money back as possible by taking advantage of “secret” tax deductions.