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Great Deductions on Your Taxes

If you are anything like my husband and I, you love looking for ways you can save on your taxes. We like to try and keep as much of our hard earned money as possible, because let’s face it, we deserve it. There are a few things you can do to get great deductions on your taxes. First, you can look at your state’s sales taxes. You can even look at your state’s income tax deduction and go off of the IRS’s table showing how much as a resident of the state you can deduct. This is especially important if you have made a large purchase such as a car. Second, you can look at any reinvested dividends that you might have. When you redeem shares make sure to include any reinvested dividends as part of the base so you aren’t taxed double! Third, keep in mind any charitable contributions. Most people remember to include major charitable monetary contributions in their deductions, but have you considered taking into account your time and small amounts of money that might have been adding up in your activities. Included in this grouping is any mileage that you may have placed on a personal vehicle for charity work. Fourth, if you are not claimed as a dependent by your parents, you can claim up to $2,500 of student-loan interest paid by mom or dad. The IRS considers this a gift from your parents. Fifth, did you know that you can get deductions for job hunting related costs? If you are unemployed and are searching for a position within the same line of work as you had been doing prior, you are able to have expenses associated with the job hunt such as travel and cost of printing resumes for example be written off if they exceed 2% of your adjusted gross income. This can be helpful especially if you are unemployed for a long period of time and have some high expenses with trying to get re-hired. Sixth, along the same lines, if you have to relocate more than 50 miles away from your home for your first job you can deduct moving expenses on your taxes. This includes the cost to move you and your household goods. Personally, I like this deduction because moving is typically very costly. Seventh, you can do what I did when I decided to donate my car. This is a great option if you find yourself with an extra car laying around and you don’t need the money from trying to sell it. This particular site will take any car working or nonworking and even accepts motorcycles, recreational vehicles, boats and trucks! Eighth, if you are in the military you can also possibly get a deduction. This is for travel expenses to drill or meetings if you travel more than 100 miles from your home and have to be away overnight. This includes lodging, half the cost of your meals, and any mileage on a personal vehicle. Ninth, if you find yourself working and you need to pay for child care, you may be able to qualify for a credit worth between 20-35% of what you pay for childcare while you work. As you can see there are many ways you can deduct on your taxes, so research and get creative.

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